Financial Survey: Owens Corning (OC) & Carbo Ceramics (CRR)

Owens Corning (NYSE: OC) and Carbo Ceramics (NYSE:CRR) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Profitability

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This table compares Owens Corning and Carbo Ceramics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Owens Corning 4.53% 12.26% 5.88%
Carbo Ceramics -67.47% -20.27% -16.40%

Institutional and Insider Ownership

92.6% of Owens Corning shares are owned by institutional investors. Comparatively, 69.6% of Carbo Ceramics shares are owned by institutional investors. 1.6% of Owens Corning shares are owned by company insiders. Comparatively, 15.1% of Carbo Ceramics shares are owned by company 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.

Valuation & Earnings

This table compares Owens Corning and Carbo Ceramics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Owens Corning $6.38 billion 1.42 $289.00 million $4.40 18.38
Carbo Ceramics $188.76 million 1.07 -$253.11 million ($3.77) -1.97

Owens Corning has higher revenue and earnings than Carbo Ceramics. Carbo Ceramics is trading at a lower price-to-earnings ratio than Owens Corning, indicating that it is currently the more affordable of the two stocks.

Dividends

Owens Corning pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. Carbo Ceramics does not pay a dividend. Owens Corning pays out 19.1% of its earnings in the form of a dividend. Owens Corning has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings for Owens Corning and Carbo Ceramics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Owens Corning 0 9 11 0 2.55
Carbo Ceramics 1 3 0 0 1.75

Owens Corning presently has a consensus target price of $86.95, suggesting a potential upside of 7.49%. Carbo Ceramics has a consensus target price of $8.00, suggesting a potential upside of 7.53%. Given Carbo Ceramics’ higher possible upside, analysts plainly believe Carbo Ceramics is more favorable than Owens Corning.

Risk and Volatility

Owens Corning has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Carbo Ceramics has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Summary

Owens Corning beats Carbo Ceramics on 13 of the 17 factors compared between the two stocks.

Owens Corning Company Profile

Owens Corning is engaged in the business of composite and building materials systems, delivering a range of products and services. The Company’s products range from glass fiber used to reinforce composite materials for transportation, electronics, marine, infrastructure, wind-energy and other markets to insulation and roofing for residential, commercial and industrial applications. The Company’s segments include Composites, Insulation and Roofing. The Composites segment sells glass fiber and/or glass mat directly to a small number of shingle manufacturers. Its insulating products include thermal and acoustical batts, loosefill insulation, foam sheathing and accessories, and these are sold under brand names, such as Owens Corning PINK FIBERGLAS Insulation. The primary products in the Roofing segment are laminate and strip asphalt roofing shingles. Its other products include oxidized asphalt, roofing components and synthetic packaging materials.

Carbo Ceramics Company Profile

CARBO Ceramics Inc., a technology company, provides products and services to the oil and gas, and industrial markets worldwide. The company operates in two segments, Oilfield Technologies and Services, and Environmental Products and Services. The Oilfield Technologies and Services segment manufactures and sells ceramic proppants for use in the hydraulic fracturing of natural gas and oil wells to pressure pumping companies; produces ceramic pellets for use in various industrial technology applications, such as casting and milling; and provides technology to design, build, and optimize the Frac. It also sells fracture stimulation software under the FracPro brand; and offers fracture design and consulting services to oil and natural gas exploration and production companies under the StrataGen brand name. The Environmental Products and Services segment provides spill prevention, containment, and countermeasure systems for the oil and gas industry. CARBO Ceramics Inc. was founded in 1987 and is headquartered in Houston, Texas.

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