Quanex Building Products (NYSE:NX) versus Bellway (OTCMKTS:BLWYY) Head-To-Head Comparison

Quanex Building Products (NYSE:NX) and Bellway (OTCMKTS:BLWYY) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Quanex Building Products and Bellway, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanex Building Products	2	0	1	0	1.67
Bellway	0	3	0	0	2.00

Quanex Building Products currently has a consensus target price of $28.00, indicating a potential upside of 36.95%. Given Quanex Building Products’ higher probable upside, analysts plainly believe Quanex Building Products is more favorable than Bellway.

Valuation & Earnings

This table compares Quanex Building Products and Bellway”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanex Building Products	$1.84 billion	0.51	-$250.81 million	($5.26)	-3.89
Bellway	$3.62 billion	1.00	$204.69 million	N/A	N/A

Bellway has higher revenue and earnings than Quanex Building Products.

Volatility and Risk

Quanex Building Products has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Bellway has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares Quanex Building Products and Bellway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quanex Building Products	-13.00%	12.24%	4.73%
Bellway	N/A	N/A	N/A

Institutional & Insider Ownership

97.5% of Quanex Building Products shares are owned by institutional investors. 1.9% of Quanex Building Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Quanex Building Products pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Bellway pays an annual dividend of $1.14 per share and has a dividend yield of 3.7%. Quanex Building Products pays out -6.1% of its earnings in the form of a dividend.

Summary

Quanex Building Products beats Bellway on 8 of the 14 factors compared between the two stocks.

About Quanex Building Products

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, rest of Europe, Canada, Asia, the United Kingdom, and internationally. The company operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. It offers flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products, as well as cabinet doors and other components for original equipment manufacturers (OEMs) in the kitchen and bathroom cabinet industry. In addition, the company provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. It sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway and Ashberry brands. Bellway p.l.c. was incorporated in 1978 and is headquartered in Newcastle upon Tyne, the United Kingdom.