Financial Contrast: Continental Building Products (CBPX) and Quanex Building Products Corporation (NX)
Continental Building Products (NYSE: CBPX) and Quanex Building Products Corporation (NYSE:NX) are both small-cap construction companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares Continental Building Products and Quanex Building Products Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Continental Building Products||$474.02 million||1.99||$131.29 million||$1.09||22.52|
|Quanex Building Products Corporation||$901.48 million||0.73||$98.42 million||($0.03)||-643.12|
Continental Building Products has higher revenue, but lower earnings than Quanex Building Products Corporation. Quanex Building Products Corporation is trading at a lower price-to-earnings ratio than Continental Building Products, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Continental Building Products has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Quanex Building Products Corporation has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Quanex Building Products Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Continental Building Products does not pay a dividend. Quanex Building Products Corporation pays out -533.2% of its earnings in the form of a dividend.
Institutional and Insider Ownership
99.8% of Quanex Building Products Corporation shares are owned by institutional investors. 0.3% of Continental Building Products shares are owned by company insiders. Comparatively, 5.3% of Quanex Building Products Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Continental Building Products and Quanex Building Products Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Continental Building Products||0||2||1||0||2.33|
|Quanex Building Products Corporation||0||0||3||0||3.00|
Continental Building Products presently has a consensus target price of $26.50, indicating a potential upside of 7.94%. Quanex Building Products Corporation has a consensus target price of $23.75, indicating a potential upside of 23.06%. Given Quanex Building Products Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Quanex Building Products Corporation is more favorable than Continental Building Products.
This table compares Continental Building Products and Quanex Building Products Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Continental Building Products||9.16%||15.45%||7.55%|
|Quanex Building Products Corporation||-0.09%||7.70%||3.64%|
Quanex Building Products Corporation beats Continental Building Products on 9 of the 16 factors compared between the two stocks.
Continental Building Products Company Profile
Continental Building Products, Inc. is a manufacturer of gypsum wallboard and complementary finishing products. The Company operates through wallboard segment. Gypsum wallboard is a primary building material used in residential and commercial construction and in repair and remodel (R&R). It offers customers a range of gypsum wallboard products, including LiftLite, its lightweight product designed to lift and install; its Mold Defense line of products designed for protection against mold and mildew, and its Weather Defense line of moisture and mold-resistant exterior sheathing. The Company also operates a finishing products business that manufactures a line of joint compounds at its plant in Silver Grove (Kentucky) and its joint compound plant in Chambly (Quebec). The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company’s manufacturing facilities are concentrated in the eastern United States and eastern Canada.
Quanex Building Products Corporation Company Profile
Quanex Building Products Corporation manufactures components for original equipment manufacturers (OEM) in the building products industry. The Company’s components can be categorized as window and door (fenestration) components, and kitchen and bath cabinet components. The Company operates through three segments: North American Engineered Components (NA Engineered Components), which consists of four operating segments primarily focused on the fenestration market in North America manufacturing vinyl profiles, insulating glass (IG) spacers, screens and other fenestration components; European Engineered Components (EU Engineered Components), which consists of the United Kingdom-based vinyl extrusion business, manufacturing vinyl profiles and conservatories, and the European insulating glass business manufacturing IG spacers, and North American Cabinet Components (NA Cabinet Components), which consists of the North American cabinet door and components business.
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