Caesarstone (NASDAQ:CSTE – Get Free Report) and Gibraltar Industries (NASDAQ:ROCK – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Profitability
This table compares Caesarstone and Gibraltar Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesarstone | -37.37% | -32.36% | -11.71% |
| Gibraltar Industries | -10.43% | 11.23% | 4.91% |
Institutional & Insider Ownership
33.7% of Caesarstone shares are owned by institutional investors. Comparatively, 98.4% of Gibraltar Industries shares are owned by institutional investors. 0.9% of Gibraltar Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesarstone | 1 | 0 | 0 | 0 | 1.00 |
| Gibraltar Industries | 1 | 1 | 1 | 1 | 2.50 |
Valuation and Earnings
This table compares Caesarstone and Gibraltar Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesarstone | $397.23 million | 0.30 | -$137.47 million | ($4.13) | -0.82 |
| Gibraltar Industries | $1.14 billion | 1.25 | -$44.39 million | ($5.04) | -9.49 |
Gibraltar Industries has higher revenue and earnings than Caesarstone. Gibraltar Industries is trading at a lower price-to-earnings ratio than Caesarstone, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Caesarstone has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Summary
Gibraltar Industries beats Caesarstone on 12 of the 14 factors compared between the two stocks.
About Caesarstone
Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.
About Gibraltar Industries
Gibraltar Industries, Inc. manufactures and provides products and services for the renewable energy, residential, agtech, and infrastructure markets in the United States and internationally. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems for commercial and distributed generation scale solar installations. The Residential segment offers roof and foundation ventilation products and accessories; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, pipe flashings, and remote-controlled deck awnings and valances for sun protection. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, construction, maintenance, and support of greenhouses; and indoor growing operations for retail, fruits and vegetables, flowers, cannabis, commercial, institutional and conservatories, and car wash structure applications. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, home improvement retailers, wholesalers, distributors, and contractors, as well as institutional and commercial growers of fruit, vegetables, flowers, and plants. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.
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