Grana y Montero S.A.A. (NYSE: GRAM) and NCI Building Systems (NYSE:NCS) are both small-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Institutional and Insider Ownership
11.7% of Grana y Montero S.A.A. shares are held by institutional investors. Comparatively, 93.4% of NCI Building Systems shares are held by institutional investors. 1.8% of NCI Building Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Grana y Montero S.A.A. and NCI Building Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Grana y Montero S.A.A.||N/A||N/A||N/A||$0.11||40.46|
|NCI Building Systems||$1.75 billion||0.58||$156.28 million||$0.79||18.04|
NCI Building Systems has higher revenue and earnings than Grana y Montero S.A.A.. NCI Building Systems is trading at a lower price-to-earnings ratio than Grana y Montero S.A.A., indicating that it is currently the more affordable of the two stocks.
This table compares Grana y Montero S.A.A. and NCI Building Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grana y Montero S.A.A.||0.82%||1.55%||0.52%|
|NCI Building Systems||3.18%||18.31%||5.31%|
Risk and Volatility
Grana y Montero S.A.A. has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, NCI Building Systems has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Grana y Montero S.A.A. and NCI Building Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grana y Montero S.A.A.||2||0||0||0||1.00|
|NCI Building Systems||0||1||3||0||2.75|
NCI Building Systems has a consensus target price of $18.13, suggesting a potential upside of 27.19%. Given NCI Building Systems’ stronger consensus rating and higher probable upside, analysts clearly believe NCI Building Systems is more favorable than Grana y Montero S.A.A..
NCI Building Systems beats Grana y Montero S.A.A. on 11 of the 12 factors compared between the two stocks.
About Grana y Montero S.A.A.
Grana y Montero SAA is a Peru-based holding company primarily engaged in the four business areas: Construction and Engineering Industry, Real Estate, Oil Services, and Operation of Public Concessions and Business Support Services. Through its subsidiaries, the Company provides such services as the development and management of real estate properties and leisure facilities; the exploration, production and sale of oil, natural gas and its derivates; the storage and distribution of combustibles; information technology services; engineering consultancy; the operation and maintenance of rails and roads concessions; as well as the execution and management of projects related to the generation of electric power; among others. The Company owns such subsidiaries as GMD SA, Adexus SA, Concar SA, Survial SA, Norvial SA and Promotores Asociados de Inmobiliarios SA, among others.
About NCI Building Systems
NCI Building Systems, Inc. is a manufacturer and marketer of metal products in North America. The Company’s operating segments include Engineered building systems, Metal components and Metal coil coating. The Engineered building systems segment is engaged in the manufacturing of main frames and long bay systems, and engineering and drafting. The Metal components segment’s products include metal roof and wall panels, doors, metal partitions, metal trim, insulated metal panel (IMP) products and other related accessories. The Company manufactures and distributes a range of metal products for the non-residential construction market. It operates in the United States, Mexico, Canada and China. The Company provides metal coil coating services, and designs, engineers, manufactures and markets metal components and engineered building systems. It also provides metal coil coating services for commercial and construction applications, servicing both internal and external customers.
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