USG Corporation (USG) versus CRH PLC (NYSE:CRH) Financial Analysis

USG Corporation (NYSE: USG) and CRH PLC (NYSE:CRH) are both mid-cap construction companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitabiliy, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares USG Corporation and CRH PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USG Corporation	14.94%	13.57%	6.20%
CRH PLC	N/A	N/A	N/A

Volatility & Risk

USG Corporation has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, CRH PLC has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

88.8% of USG Corporation shares are held by institutional investors. Comparatively, 4.5% of CRH PLC shares are held by institutional investors. 0.7% of USG Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares USG Corporation and CRH PLC’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
USG Corporation	$3.08 billion	1.25	$487.00 million	$3.10	8.63
CRH PLC	$31.52 billion	0.92	$3.61 billion	N/A	N/A

CRH PLC has higher revenue and earnings than USG Corporation.

Analyst Ratings

This is a summary of current recommendations and price targets for USG Corporation and CRH PLC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USG Corporation	2	11	5	0	2.17
CRH PLC	1	3	3	0	2.29

USG Corporation currently has a consensus target price of $31.00, suggesting a potential upside of 15.93%. Given USG Corporation’s higher probable upside, research analysts clearly believe USG Corporation is more favorable than CRH PLC.

Dividends

CRH PLC pays an annual dividend of $0.71 per share and has a dividend yield of 2.0%. USG Corporation does not pay a dividend.

Summary

USG Corporation beats CRH PLC on 9 of the 13 factors compared between the two stocks.

About USG Corporation

USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. The Company’s segments include Gypsum, Ceilings and USG Boral Building Products (UBBP). It produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. Its products are distributed through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. Gypsum segment manufactures and markets gypsum and related products in the United States, Canada, Mexico and Latin America. Ceilings segment manufactures and markets interior systems products in the United States, Canada, Mexico and Latin America. The UBBP segment manufactures, distributes and sells certain building products, mines raw gypsum and sells natural and synthetic gypsum throughout Asia, Australasia and the Middle East.

About CRH PLC

CRH public limited company (CRH plc) is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.