Continental Building Products (CBPX) versus Foundation Building Materials (FBM) Critical Contrast
Continental Building Products (NYSE: CBPX) and Foundation Building Materials (NYSE:FBM) are both small-cap construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
92.1% of Foundation Building Materials shares are owned by institutional investors. 0.3% of Continental Building Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings for Continental Building Products and Foundation Building Materials, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Continental Building Products||0||2||1||0||2.33|
|Foundation Building Materials||0||2||7||0||2.78|
Continental Building Products presently has a consensus target price of $26.50, suggesting a potential upside of 7.29%. Foundation Building Materials has a consensus target price of $18.43, suggesting a potential upside of 44.09%. Given Foundation Building Materials’ stronger consensus rating and higher probable upside, analysts clearly believe Foundation Building Materials is more favorable than Continental Building Products.
Earnings and Valuation
This table compares Continental Building Products and Foundation Building Materials’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Continental Building Products||$474.02 million||2.00||$131.29 million||$1.09||22.66|
|Foundation Building Materials||$1.89 billion||0.29||$108.42 million||N/A||N/A|
Continental Building Products has higher revenue, but lower earnings than Foundation Building Materials.
This table compares Continental Building Products and Foundation Building Materials’ 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%|
|Foundation Building Materials||N/A||N/A||N/A|
Continental Building Products beats Foundation Building Materials on 6 of the 11 factors compared between the two stocks.
About Continental Building Products
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.
About Foundation Building Materials
Foundation Building Materials, Inc. is a specialty distributor of wallboard and suspended ceiling systems in the United States and Canada. The Company’s segments include Specialty Building Products and Mechanical Insulation. The Company fabricates and distributes its products for specialty contractors seeking to improve or maintain energy efficiency in a range of commercial and industrial buildings. It serves markets across the United States and in Canada. Specialty building products segment distributes wallboard and accessories, metal framing, suspended ceiling systems and other products. Other products include stucco and Exterior insulation and finish system (EIFS), as well as offerings, such as tools, safety accessories and fasteners. Its Mechanical insulation segment includes insulation solutions for pipes and mechanical systems and the primary end markets served are new non-residential construction, non- residential repair and remodel construction and industrial markets.
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