Frontdoor (NASDAQ:FTDR) vs. Aspen Aerogels (NYSE:ASPN) Head-To-Head Review

Aspen Aerogels (NYSE:ASPN) and Frontdoor (NASDAQ:FTDR) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. 4.3% of Aspen Aerogels shares are owned by insiders. Comparatively, 1.5% of Frontdoor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Aspen Aerogels has a beta of 2.8, suggesting that its share price is 180% more volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Aspen Aerogels and Frontdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	2	2	4	1	2.44
Frontdoor	1	2	3	0	2.33

Aspen Aerogels presently has a consensus price target of $15.50, suggesting a potential upside of 89.81%. Frontdoor has a consensus price target of $59.75, suggesting a potential downside of 10.07%. Given Aspen Aerogels’ stronger consensus rating and higher probable upside, analysts clearly believe Aspen Aerogels is more favorable than Frontdoor.

Profitability

This table compares Aspen Aerogels and Frontdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-78.53%	2.92%	1.85%
Frontdoor	13.07%	125.21%	15.65%

Earnings and Valuation

This table compares Aspen Aerogels and Frontdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$397.18 million	1.69	$13.38 million	($3.81)	-2.14
Frontdoor	$1.84 billion	2.63	$235.00 million	$3.39	19.60

Frontdoor has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels 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 Aspen Aerogels on 8 of the 15 factors compared between the two stocks.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

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.