Gibraltar Industries (NASDAQ: ROCK) and United States Steel Corporation (NYSE:X) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Risk and Volatility

Gibraltar Industries has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, United States Steel Corporation has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500.

Institutional & Insider Ownership

63.4% of United States Steel Corporation shares are held by institutional investors. 0.5% of Gibraltar Industries shares are held by insiders. Comparatively, 1.0% of United States Steel Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Gibraltar Industries and United States Steel Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gibraltar Industries 2.38% 10.14% 5.09%
United States Steel Corporation 0.24% 6.50% 1.67%

Dividends

United States Steel Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Gibraltar Industries does not pay a dividend. United States Steel Corporation pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gibraltar Industries and United States Steel Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gibraltar Industries 0 0 2 0 3.00
United States Steel Corporation 3 6 8 0 2.29

Gibraltar Industries currently has a consensus target price of $34.50, indicating a potential upside of 18.97%. United States Steel Corporation has a consensus target price of $27.91, indicating a potential upside of 11.22%. Given Gibraltar Industries’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Gibraltar Industries is more favorable than United States Steel Corporation.

Valuation & Earnings

This table compares Gibraltar Industries and United States Steel Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gibraltar Industries $958.80 million 0.96 $109.22 million $0.71 40.85
United States Steel Corporation $11.21 billion 0.39 $838.00 million $0.16 156.81

United States Steel Corporation has higher revenue and earnings than Gibraltar Industries. Gibraltar Industries is trading at a lower price-to-earnings ratio than United States Steel Corporation, indicating that it is currently the more affordable of the two stocks.

Gibraltar Industries Company Profile

Gibraltar Industries, Inc. is a manufacturer and distributor of building products for industrial, transportation infrastructure, residential housing, renewable energy and resource conservation markets. The Company’s segments include Residential Products; Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment services residential housing construction and residential repair and remodeling activity with products including roof and foundation ventilation products, rain dispersion products and roof ventilation accessories. The Industrial and Infrastructure Products segment focuses on a range of markets, including industrial and commercial construction, automotive, airports and energy and power generation markets with products. The Renewable Energy and Conservation segment focuses on the design, engineering, manufacturing and installation of solar racking systems and commercial, institutional and retail greenhouse structures.

United States Steel Corporation Company Profile

United States Steel Corporation is an integrated steel producer. The Company is engaged in producing flat-rolled and tubular products with production operations in North America and Europe. The Company operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE) and Tubular Products (Tubular). The Flat-Rolled segment includes the operating results of its integrated steel plants and equity investees in the United States involved in the production of slabs, rounds, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States. The USSE segment includes the operating results of U. S. Steel Kosice (USSK) and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil.

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