General Cable (NYSE: BGC) and Corning (NYSE:GLW) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
72.9% of Corning shares are held by institutional investors. 1.8% of General Cable shares are held by company insiders. Comparatively, 0.5% of Corning shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares General Cable and Corning’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for General Cable and Corning, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Corning has a consensus target price of $30.50, indicating a potential upside of 9.87%. Given Corning’s higher probable upside, analysts plainly believe Corning is more favorable than General Cable.
Valuation & Earnings
This table compares General Cable and Corning’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Cable||$3.84 billion||0.39||-$56.60 million||N/A||N/A|
|Corning||$10.12 billion||2.35||-$497.00 million||$1.72||16.14|
General Cable has higher earnings, but lower revenue than Corning.
General Cable pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Corning pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Corning pays out 41.9% of its earnings in the form of a dividend. Corning has raised its dividend for 7 consecutive years. Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
General Cable has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Corning beats General Cable on 8 of the 15 factors compared between the two stocks.
General Cable Company Profile
General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.
Corning Company Profile
Corning Incorporated manufactures and sells specialty glasses, ceramics, and related materials in North America, the Asia Pacific, Europe, and internationally. The company operates through five segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. The Display Technologies segment manufactures glass substrates for liquid crystal displays (LCDs) used in LCD televisions, notebook computers, and flat panel desktop monitors. The Optical Communications segment manufactures optical fiber and cable; and hardware and equipment products comprising cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for various carrier network applications. This segment also offers subscriber demarcation, connection and protection devices, various digital subscriber line passive solutions, and outside plant enclosures; and coaxial RF interconnects for the cable television industry and microwave applications. The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, and fluoride crystals. The Life Sciences segment manufactures and supplies scientific laboratory products consisting of consumables, such as plastic vessels, specialty surfaces, and media and serum, as well as general labware and equipment for cell culture research, bioprocessing, genomics, drug discovery, microbiology, and chemistry. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.
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