NCI Building Systems (NYSE: NCS) and USD Partners (NYSE:USDP) are both small-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Volatility and Risk

NCI Building Systems has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, USD Partners has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

93.8% of NCI Building Systems shares are held by institutional investors. Comparatively, 40.2% of USD Partners shares are held by institutional investors. 1.8% of NCI Building Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares NCI Building Systems and USD Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NCI Building Systems $1.75 billion 0.56 $156.28 million $0.79 17.34
USD Partners $110.04 million 2.50 $55.88 million $1.23 8.50

NCI Building Systems has higher revenue and earnings than USD Partners. USD Partners is trading at a lower price-to-earnings ratio than NCI Building Systems, indicating that it is currently the more affordable of the two stocks.

Dividends

USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 13.0%. NCI Building Systems does not pay a dividend. USD Partners pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares NCI Building Systems and USD Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCI Building Systems 3.18% 18.31% 5.31%
USD Partners 21.37% 42.91% 7.72%

Analyst Recommendations

This is a summary of current recommendations and price targets for NCI Building Systems and USD Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCI Building Systems 0 1 3 0 2.75
USD Partners 1 1 2 0 2.25

NCI Building Systems currently has a consensus price target of $18.13, suggesting a potential upside of 32.30%. USD Partners has a consensus price target of $16.00, suggesting a potential upside of 53.11%. Given USD Partners’ higher probable upside, analysts clearly believe USD Partners is more favorable than NCI Building Systems.

Summary

NCI Building Systems beats USD Partners on 9 of the 16 factors compared between the two stocks.

NCI Building Systems Company Profile

NCI Building Systems, Inc. is a manufacturer and marketer of metal products in North America. The Company’s operating segments include Engineered building systems, Metal components and Metal coil coating. The Engineered building systems segment is engaged in the manufacturing of main frames and long bay systems, and engineering and drafting. The Metal components segment’s products include metal roof and wall panels, doors, metal partitions, metal trim, insulated metal panel (IMP) products and other related accessories. The Company manufactures and distributes a range of metal products for the non-residential construction market. It operates in the United States, Mexico, Canada and China. The Company provides metal coil coating services, and designs, engineers, manufactures and markets metal components and engineered building systems. It also provides metal coil coating services for commercial and construction applications, servicing both internal and external customers.

USD Partners Company Profile

USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.

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