Aspen Aerogels (NYSE: ASPN) and Beacon Roofing Supply (NASDAQ:BECN) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
70.9% of Aspen Aerogels shares are owned by institutional investors. 16.8% of Aspen Aerogels shares are owned by insiders. Comparatively, 0.8% of Beacon Roofing Supply shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Aspen Aerogels and Beacon Roofing Supply, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beacon Roofing Supply||0||2||7||0||2.78|
Aspen Aerogels currently has a consensus price target of $4.75, indicating a potential upside of 9.45%. Beacon Roofing Supply has a consensus price target of $61.11, indicating a potential upside of 17.54%. Given Beacon Roofing Supply’s stronger consensus rating and higher possible upside, analysts clearly believe Beacon Roofing Supply is more favorable than Aspen Aerogels.
Valuation & Earnings
This table compares Aspen Aerogels and Beacon Roofing Supply’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aspen Aerogels||$111.63 million||0.92||-$19.32 million||($0.83)||-5.23|
|Beacon Roofing Supply||$4.38 billion||0.81||$100.86 million||$2.18||23.85|
Beacon Roofing Supply has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than Beacon Roofing Supply, indicating that it is currently the more affordable of the two stocks.
This table compares Aspen Aerogels and Beacon Roofing Supply’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beacon Roofing Supply||3.29%||9.60%||4.21%|
Risk & Volatility
Aspen Aerogels has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Beacon Roofing Supply has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
Beacon Roofing Supply beats Aspen Aerogels on 11 of the 14 factors compared between the two stocks.
Aspen Aerogels Company Profile
Aspen Aerogels, Inc., an aerogel technology company, designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and building materials markets worldwide. The company provides Pyrogel XT-E that reduces the risk of corrosion under insulation in energy infrastructure operating systems; Pyrogel HPS for applications within the power generation market with operating temperatures greater than 400 C; Pyrogel XTF to provide strong protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; and Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production. It also offers Spaceloft Grey for use in the building materials market; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. In addition, the company provides contract research services for the Department of Defense, the Department of Energy, and other institutions. Aspen Aerogels, Inc. was founded in 2001 and is headquartered in Northborough, Massachusetts.
Beacon Roofing Supply Company Profile
Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and commercial roofing materials, and other complementary building materials to contractors, home builders, retailers, and building materials suppliers. The company's residential roofing products include asphalt shingles, synthetic slates and tiles, clay and concrete tiles, slates, nail base insulations, metal roofing, felts, synthetic underlayment, wood shingles and shakes, nails and fasteners, metal edgings and flashings, prefabricated flashings, ridges and soffit vents, and other accessories. Its non-residential roofing products comprise single-ply roofing, asphalt, metal, modified bitumen, and build-up roofing products; cements and coatings; flat stock and tapered insulations; commercial fasteners; metal edges and flashings; smoke/roof hatches; roofing tools; sheet metal products, including copper, aluminum, and steel; and PVC, thermoplastic olefin, and ethylene propylene diene monomer membrane products. The company also provides complementary building products, such as vinyl, wood, and fiber cement sidings; and stone veneers, windows, doors, skylights, and gutters and downspouts, as well as decking and railing, sealants, air barriers, water proofing, building insulation, concrete restoration systems, and millwork products. In addition, it offers value-added services, including advice and assistance on product identification, specification, and technical support; job site delivery, rooftop loading, and logistical services; tapered insulation design and related layout services; metal fabrication and related metal roofing design and layout services; trade credit; and marketing support for contractors. As of November 20, 2017, the company operated through a network of 383 branches in 48 states of the United States and 6 provinces in Canada. Beacon Roofing Supply, Inc. was founded in 1928 and is headquartered in Herndon, Virginia.
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