Head-To-Head Contrast: Owens Corning (OC) and Carbo Ceramics (CRR)

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

Analyst Recommendations

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This is a summary of current ratings and target prices for Owens Corning and Carbo Ceramics, as provided 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 probable upside, analysts clearly believe Carbo Ceramics is more favorable than Owens Corning.

Earnings and Valuation

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

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 insiders. Comparatively, 16.2% of Carbo Ceramics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Owens Corning has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Carbo Ceramics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

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 raised its dividend for 3 consecutive years.

Profitability

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%

Summary

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

About Owens Corning

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.

About Carbo Ceramics

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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