Head to Head Contrast: Apogee Enterprises (NASDAQ:APOG) and Owens Corning (NYSE:OC)

Owens Corning (NYSE:OC) and Apogee Enterprises (NASDAQ:APOG) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Earnings & Valuation

This table compares Owens Corning and Apogee Enterprises”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Owens Corning	$10.10 billion	0.89	-$522.00 million	($8.06)	-14.18
Apogee Enterprises	$1.40 billion	0.65	$54.13 million	$3.16	13.81

Apogee Enterprises has lower revenue, but higher earnings than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than Apogee Enterprises, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

88.4% of Owens Corning shares are held by institutional investors. Comparatively, 94.1% of Apogee Enterprises shares are held by institutional investors. 0.9% of Owens Corning shares are held by insiders. Comparatively, 2.0% of Apogee Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Owens Corning pays an annual dividend of $3.16 per share and has a dividend yield of 2.8%. Apogee Enterprises pays an annual dividend of $1.08 per share and has a dividend yield of 2.5%. Owens Corning pays out -39.2% of its earnings in the form of a dividend. Apogee Enterprises pays out 34.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Owens Corning has increased its dividend for 10 consecutive years and Apogee Enterprises has increased its dividend for 14 consecutive years. Owens Corning is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings for Owens Corning and Apogee Enterprises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owens Corning	4	5	7	2	2.39
Apogee Enterprises	0	1	2	1	3.00

Owens Corning currently has a consensus target price of $141.57, suggesting a potential upside of 23.89%. Apogee Enterprises has a consensus target price of $70.50, suggesting a potential upside of 61.59%. Given Apogee Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe Apogee Enterprises is more favorable than Owens Corning.

Profitability

This table compares Owens Corning and Apogee Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Owens Corning	-6.81%	20.52%	6.21%
Apogee Enterprises	4.68%	15.20%	6.83%

Risk and Volatility

Owens Corning has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Summary

Apogee Enterprises beats Owens Corning on 10 of the 18 factors compared between the two stocks.

About Owens Corning

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.

About Apogee Enterprises

Apogee Enterprises, Inc. provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, finishes, and installs custom glass and aluminum window, curtainwall, storefront, and entrance systems for the exterior of buildings primarily in the non-residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; institutional buildings comprising education facilities, health care facilities, and government buildings; transportation facilities, such as airports and transit terminals, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, distributors, and glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.