Obayashi (OTCMKTS:OBYCF) vs. Caesarstone (NASDAQ:CSTE) Head-To-Head Survey

Obayashi (OTCMKTS:OBYCF) and Caesarstone (NASDAQ:CSTE) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Obayashi has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Caesarstone has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Profitability

This table compares Obayashi and Caesarstone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Obayashi	7.06%	9.60%	3.90%
Caesarstone	-34.60%	-24.33%	-10.79%

Earnings and Valuation

This table compares Obayashi and Caesarstone”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obayashi	$17.21 billion	0.97	$976.81 million	$1.72	13.78
Caesarstone	$397.23 million	0.15	-$137.47 million	($3.98)	-0.42

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

Analyst Ratings

This is a summary of current ratings for Obayashi and Caesarstone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obayashi	0	0	0	0	0.00
Caesarstone	1	0	0	0	1.00

Insider and Institutional Ownership

33.7% of Caesarstone shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Obayashi beats Caesarstone on 9 of the 11 factors compared between the two stocks.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, river works, urban civil engineering structures, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in urban areas, as well as property management activities; solar, biomass, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company provides non-life insurance agency business. Further, it engages in the provision of urban redevelopment, contracted operations, and facility management services, as well as M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.

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.