Critical Contrast: Crh Plc (CRH) versus GCP Applied Technologies (GCP)

GCP Applied Technologies (NYSE: GCP) and Crh Plc (NYSE:CRH) are both mid-cap construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GCP Applied Technologies and Crh Plc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCP Applied Technologies	0	0	4	0	3.00
Crh Plc	1	3	3	0	2.29

GCP Applied Technologies presently has a consensus target price of $35.50, suggesting a potential upside of 16.39%. Given GCP Applied Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe GCP Applied Technologies is more favorable than Crh Plc.

Institutional & Insider Ownership

81.6% of GCP Applied Technologies shares are owned by institutional investors. Comparatively, 4.5% of Crh Plc shares are owned by institutional investors. 0.7% of GCP Applied Technologies 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.

Profitability

This table compares GCP Applied Technologies and Crh Plc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCP Applied Technologies	0.26%	-44.32%	5.24%
Crh Plc	N/A	N/A	N/A

Risk and Volatility

GCP Applied Technologies has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Crh Plc has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Dividends

Crh Plc pays an annual dividend of $0.71 per share and has a dividend yield of 2.0%. GCP Applied Technologies does not pay a dividend.

Earnings and Valuation

This table compares GCP Applied Technologies and Crh Plc’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
GCP Applied Technologies	$1.34 billion	1.63	$214.90 million	$0.04	762.50
Crh Plc	$31.52 billion	0.93	$3.61 billion	N/A	N/A

Crh Plc has higher revenue and earnings than GCP Applied Technologies.

Summary

GCP Applied Technologies beats Crh Plc on 9 of the 14 factors compared between the two stocks.

About GCP Applied Technologies

GCP Applied Technologies Inc. produces and sells specialty construction chemicals, specialty building materials, and packaging sealants and coatings. The Company operates through two segments: Specialty Construction Chemicals and Specialty Building Materials. The Specialty Construction Chemicals segment manufactures and markets products to manage performance of Portland cement, and materials based on Portland cement, such as concrete admixtures and cement additives, as well as concrete production management systems. The Specialty Building Materials segment manufactures and markets building envelope products, residential building products and specialty construction products. Its brands include ADVA, CBA, MIRA, ADPRUFE, DARABLEND and APPERTA.

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.