GCP Applied Technologies (NYSE: GCP) and Texas Industries (NYSE:TXI) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
82.3% of GCP Applied Technologies shares are owned by institutional investors. 0.7% of GCP Applied Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares GCP Applied Technologies and Texas Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GCP Applied Technologies||0.49%||N/A||0.48%|
This is a breakdown of recent recommendations for GCP Applied Technologies and Texas Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GCP Applied Technologies||0||0||4||0||3.00|
GCP Applied Technologies currently has a consensus target price of $35.50, indicating a potential upside of 18.93%. Texas Industries has a consensus target price of $82.00, indicating a potential downside of 10.97%. Given GCP Applied Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe GCP Applied Technologies is more favorable than Texas Industries.
Valuation and Earnings
This table compares GCP Applied Technologies and Texas Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|GCP Applied Technologies||$1.35 billion||1.58||$209.90 million||$0.04||746.25|
GCP Applied Technologies has higher revenue and earnings than Texas Industries.
GCP Applied Technologies beats Texas Industries on 8 of the 8 factors compared between the two stocks.
GCP Applied Technologies Company Profile
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.
Texas Industries Company Profile
Texas Industries, Inc. is a supplier of construction materials in the southwestern United States. The Company operates in three segments: cement, aggregates and consumer products. Its cement segment produces gray portland cement and specialty cements. The Company’s cement production and distribution facilities are concentrated primarily in Texas and California. Its aggregates segment produces natural aggregates, including sand, gravel and crushed limestone. The Company’s consumer products segment produces ready-mix concrete. It is also a supplier of natural aggregates and ready-mix concrete in Texas and northern Louisiana and in Oklahoma and Arkansas. As of May 31, 2013, the Company had 123 manufacturing facilities in five states. During the fiscal year ended May 31, 2013 (fiscal 2013), it produced approximately 4.3 million tons of finished cement. The Company produced approximately 14.2 million tons of natural aggregates during fiscal 2013.
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