Reviewing Caesarstone (CSTE) & Its Rivals

Caesarstone (NASDAQ:CSTE) is one of 39 public companies in the “BLDG&CONST – MISC” industry, but how does it weigh in compared to its peers? We will compare Caesarstone to related companies based on the strength of its risk, profitability, earnings, institutional ownership, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations for Caesarstone and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesarstone	0	0	1	0	3.00
Caesarstone Competitors	243	1411	2273	111	2.56

Caesarstone currently has a consensus target price of $6.00, suggesting a potential upside of 211.69%. As a group, “BLDG&CONST – MISC” companies have a potential upside of 7.61%. Given Caesarstone’s stronger consensus rating and higher possible upside, equities analysts plainly believe Caesarstone is more favorable than its peers.

Profitability

This table compares Caesarstone and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesarstone	-11.93%	-13.23%	-6.76%
Caesarstone Competitors	-11.01%	65.74%	4.94%

Earnings and Valuation

This table compares Caesarstone and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Caesarstone	$443.22 million	-$42.83 million	-1.42
Caesarstone Competitors	$6.80 billion	$567.85 million	24.00

Caesarstone’s peers have higher revenue and earnings than Caesarstone. Caesarstone is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Caesarstone has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Caesarstone’s peers have a beta of 0.97, meaning that their average share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

33.7% of Caesarstone shares are held by institutional investors. Comparatively, 91.0% of shares of all “BLDG&CONST – MISC” companies are held by institutional investors. 3.8% of shares of all “BLDG&CONST – MISC” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Caesarstone peers beat Caesarstone on 10 of the 13 factors compared.

About Caesarstone

Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.