Contrasting Frontdoor (NASDAQ:FTDR) & Gibraltar Industries (NASDAQ:ROCK)

Frontdoor (NASDAQ:FTDR) and Gibraltar Industries (NASDAQ:ROCK) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Frontdoor and Gibraltar Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	1	1	2	0	2.25
Gibraltar Industries	0	0	0	0	0.00

Frontdoor presently has a consensus target price of $59.75, suggesting a potential downside of 0.50%. Given Frontdoor’s stronger consensus rating and higher probable upside, analysts plainly believe Frontdoor is more favorable than Gibraltar Industries.

Risk and Volatility

Frontdoor has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Frontdoor and Gibraltar Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	13.07%	125.21%	15.65%
Gibraltar Industries	10.08%	12.91%	9.18%

Institutional & Insider Ownership

98.4% of Gibraltar Industries shares are owned by institutional investors. 1.5% of Frontdoor shares are owned by company insiders. Comparatively, 0.5% of Gibraltar Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Frontdoor and Gibraltar Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$1.84 billion	2.37	$235.00 million	$3.39	17.71
Gibraltar Industries	$1.31 billion	1.46	$137.34 million	$4.17	15.55

Frontdoor has higher revenue and earnings than Gibraltar Industries. Gibraltar Industries is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.

Summary

Frontdoor beats Gibraltar Industries on 11 of the 13 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

About Gibraltar Industries

Gibraltar Industries, Inc. manufactures and provides products and services for the renewable energy, residential, agtech, and infrastructure markets in the United States and internationally. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems for commercial and distributed generation scale solar installations. The Residential segment offers roof and foundation ventilation products and accessories; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, pipe flashings, and remote-controlled deck awnings and valances for sun protection. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, construction, maintenance, and support of greenhouses; and indoor growing operations for retail, fruits and vegetables, flowers, cannabis, commercial, institutional and conservatories, and car wash structure applications. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, home improvement retailers, wholesalers, distributors, and contractors, as well as institutional and commercial growers of fruit, vegetables, flowers, and plants. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.