Critical Contrast: Resideo Technologies (NYSE:REZI) and Tecnoglass (NYSE:TGLS)

Tecnoglass (NYSE:TGLS) and Resideo Technologies (NYSE:REZI) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares Tecnoglass and Resideo Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tecnoglass	$983.61 million	2.12	$159.57 million	$2.34	20.06
Resideo Technologies	$7.47 billion	0.41	-$527.00 million	$2.26	8.87

Tecnoglass has higher earnings, but lower revenue than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Tecnoglass, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

37.3% of Tecnoglass shares are owned by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are owned by institutional investors. 0.1% of Tecnoglass shares are owned by company insiders. Comparatively, 1.6% of Resideo Technologies shares are owned by company 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Tecnoglass and Resideo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecnoglass	0	2	3	0	2.60
Resideo Technologies	0	3	5	0	2.62

Tecnoglass presently has a consensus price target of $63.33, indicating a potential upside of 34.92%. Resideo Technologies has a consensus price target of $31.75, indicating a potential upside of 58.39%. Given Resideo Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Resideo Technologies is more favorable than Tecnoglass.

Profitability

This table compares Tecnoglass and Resideo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tecnoglass	12.35%	17.84%	10.14%
Resideo Technologies	5.37%	17.79%	5.13%

Summary

Tecnoglass beats Resideo Technologies on 7 of the 13 factors compared between the two stocks.

About Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.