TopBuild (NYSE:BLD) and China Advanced Constructn Mtrls Grp (NASDAQ:CADC) are both small-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Earnings and Valuation
This table compares TopBuild and China Advanced Constructn Mtrls Grp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TopBuild||$1.91 billion||0.94||$158.13 million||$2.78||18.23|
|China Advanced Constructn Mtrls Grp||$45.74 million||0.38||-$7.39 million||N/A||N/A|
This is a breakdown of current recommendations and price targets for TopBuild and China Advanced Constructn Mtrls Grp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Advanced Constructn Mtrls Grp||0||0||0||0||N/A|
TopBuild currently has a consensus price target of $78.67, indicating a potential upside of 55.22%. Given TopBuild’s higher possible upside, analysts clearly believe TopBuild is more favorable than China Advanced Constructn Mtrls Grp.
This table compares TopBuild and China Advanced Constructn Mtrls Grp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Advanced Constructn Mtrls Grp||-16.18%||-69.93%||-11.59%|
Institutional and Insider Ownership
94.6% of TopBuild shares are held by institutional investors. Comparatively, 0.7% of China Advanced Constructn Mtrls Grp shares are held by institutional investors. 1.4% of TopBuild shares are held by company insiders. Comparatively, 38.9% of China Advanced Constructn Mtrls Grp shares are held 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.
Volatility and Risk
TopBuild has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, China Advanced Constructn Mtrls Grp has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
TopBuild beats China Advanced Constructn Mtrls Grp on 9 of the 11 factors compared between the two stocks.
TopBuild Corp. engages in the installation, distribution, and sale of insulation and other building products to the United States construction industry. The company operates in two segments, Installation and Distribution. It offers rain gutters, garage doors, fireplaces, fireproofing and firestopping products, shower enclosures, closet shelves, accessories, and other building products; and residential insulation services. The company also provides various services and tools that are designed to assist builders in applying the principles of building science to new home construction, which includes pre-construction plan reviews, various inspection services, and diagnostic testing; and home energy rating services. It serves single-family homebuilders, local/single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders. TopBuild Corp. has approximately 175 installation branches located in 41 states, and 70 distribution centers in 32 states. The company was formerly known as Masco SpinCo Corp. and changed its name to TopBuild Corp. in March 2015. TopBuild Corp. was incorporated in 2015 and is headquartered in Daytona Beach, Florida.
About China Advanced Constructn Mtrls Grp
China Advanced Construction Materials Group, Inc., through its subsidiaries, produces and sells construction materials for large scale infrastructure, commercial, and residential developments primarily in the People's Republic of China. Its products include ready-mixed concrete blends, controlled low-strength materials, high-strength concrete products with customized fibers, and soil cement and foundation concretes; and compound admixture, lightweight aggregate, thermostat, and C100 high performance concrete products. The company sells its products to construction companies. It serves subcontractors, general contractors, property owners and developers, governmental agencies, and home builders. The company was founded in 2002 and is based in Beijing, China.
Receive News & Ratings for TopBuild Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TopBuild and related companies with MarketBeat.com's FREE daily email newsletter.