Analyzing Forterra (FRTA) and U.S. Concrete (USCR)

Forterra (NASDAQ: FRTA) and U.S. Concrete (NASDAQ:USCR) are both small-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Risk & Volatility

Forterra has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, U.S. Concrete has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Earnings and Valuation

This table compares Forterra and U.S. Concrete’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forterra $1.58 billion 0.32 -$2.06 million ($0.79) -9.91
U.S. Concrete $1.34 billion 0.78 $25.51 million $2.71 22.77

U.S. Concrete has lower revenue, but higher earnings than Forterra. Forterra is trading at a lower price-to-earnings ratio than U.S. Concrete, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Forterra and U.S. Concrete’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forterra -0.13% -44.06% -2.53%
U.S. Concrete 1.08% 13.63% 2.91%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Forterra and U.S. Concrete, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forterra 1 4 2 0 2.14
U.S. Concrete 0 0 4 0 3.00

Forterra presently has a consensus price target of $10.86, indicating a potential upside of 38.66%. U.S. Concrete has a consensus price target of $87.25, indicating a potential upside of 41.41%. Given U.S. Concrete’s stronger consensus rating and higher possible upside, analysts clearly believe U.S. Concrete is more favorable than Forterra.

Summary

U.S. Concrete beats Forterra on 11 of the 12 factors compared between the two stocks.

About Forterra

Forterra, Inc. manufactures and sells water and drainage pipe and products in the United States and Eastern Canada. It also manufactures structural and specialty precast products, and precast concrete bridge girders; and pressure, prestressed concrete, and bar-wrapped concrete pipes. The company serves water-related infrastructure applications, including water transmission, distribution, and drainage; and contractors, distributors, municipalities, and utilities waterworks. Forterra, Inc. was founded in 2016 and is headquartered in Irving, Texas.

About U.S. Concrete

U.S. Concrete, Inc., through its subsidiaries, produces and sells ready-mixed concrete, aggregates, and concrete-related products and services to the construction industry in the United States and Canada. It operates through two segments, Ready-Mixed Concrete and Aggregate Products. The Ready-Mixed Concrete segment engages in the formulation, preparation, and delivery of ready-mixed concrete to customers' job sites; and the provision of various services that include the formulation of mixtures for specific design uses, on-site and lab-based product quality control, and customized delivery programs. The Aggregate Products segment offers crushed stone, sand, and gravel for use in commercial, industrial, and public works projects. The company also engages in the operation of building materials stores; provision of concrete blocks, lime slurry, and Aridus rapid-drying concrete technology; sale of brokered products; hauling and recycled aggregates operation activities; distribution of aggregates; and operation of industrial waterfront marine terminal and sales yard. It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders. The company was founded in 1997 and is based in Euless, Texas.

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