Comparing Aspen Aerogels (ASPN) and Foundation Building Materials (FBM)

Aspen Aerogels (NYSE: ASPN) and Foundation Building Materials (NYSE:FBM) are both small-cap construction companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

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This is a summary of current ratings and price targets for Aspen Aerogels and Foundation Building Materials, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Aerogels 0 1 0 0 2.00
Foundation Building Materials 0 1 4 1 3.00

Aspen Aerogels presently has a consensus target price of $4.75, suggesting a potential upside of 13.64%. Foundation Building Materials has a consensus target price of $17.67, suggesting a potential upside of 21.00%. Given Foundation Building Materials’ stronger consensus rating and higher possible upside, analysts clearly believe Foundation Building Materials is more favorable than Aspen Aerogels.

Valuation & Earnings

This table compares Aspen Aerogels and Foundation Building Materials’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aspen Aerogels $111.63 million 0.89 -$19.32 million ($0.83) -5.04
Foundation Building Materials $2.06 billion 0.30 $82.48 million $0.30 48.67

Foundation Building Materials has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than Foundation Building Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aspen Aerogels and Foundation Building Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aspen Aerogels -17.31% -18.70% -15.83%
Foundation Building Materials 4.00% 2.44% 0.58%

Risk and Volatility

Aspen Aerogels has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Foundation Building Materials has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Institutional and Insider Ownership

70.9% of Aspen Aerogels shares are held by institutional investors. Comparatively, 94.2% of Foundation Building Materials shares are held by institutional investors. 16.8% of Aspen Aerogels shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Foundation Building Materials beats Aspen Aerogels on 12 of the 15 factors compared between the two stocks.

Aspen Aerogels Company Profile

Aspen Aerogels, Inc. is an energy technology company that designs, develops and manufactures aerogel insulation used primarily in energy infrastructure facilities. The Company also performs contract research services for various federal and non-federal government agencies, including the Department of Defense, the Department of Energy and other institutions. Its product lines include Pyrogel and Cryogel. The Company provides Pyrogel XT/XT-E that reduces the risk of corrosion under insulation in high temperature operating systems; Pyrogel XTF, which provides protection against fire; Cryogel Z, which is designed for sub-ambient and cryogenic applications in the energy infrastructure market, and Spaceloft Subsea, which is used in pipe-in-pipe applications in offshore oil production. It also offers Spaceloft for use in building and construction market, and Cryogel X201, which is used in cold system designs consisting of refrigerated appliances, cold storage equipment and aerospace systems.

Foundation Building Materials Company Profile

Foundation Building Materials, Inc. is a specialty distributor of wallboard and suspended ceiling systems in the United States and Canada. The Company’s segments include Specialty Building Products and Mechanical Insulation. The Company fabricates and distributes its products for specialty contractors seeking to improve or maintain energy efficiency in a range of commercial and industrial buildings. It serves markets across the United States and in Canada. Specialty building products segment distributes wallboard and accessories, metal framing, suspended ceiling systems and other products. Other products include stucco and Exterior insulation and finish system (EIFS), as well as offerings, such as tools, safety accessories and fasteners. Its Mechanical insulation segment includes insulation solutions for pipes and mechanical systems and the primary end markets served are new non-residential construction, non- residential repair and remodel construction and industrial markets.

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