Critical Survey: Owens Corning (NYSE:OC) vs. American Biltrite (OTCMKTS:ABLT)

American Biltrite (OTCMKTS:ABLT) and Owens Corning (NYSE:OC) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

88.4% of Owens Corning shares are held by institutional investors. 0.8% of Owens Corning shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

American Biltrite has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500. Comparatively, Owens Corning has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares American Biltrite and Owens Corning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Biltrite	-4.16%	-34.23%	-6.13%
Owens Corning	-4.46%	24.42%	8.53%

Earnings & Valuation

This table compares American Biltrite and Owens Corning”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Biltrite	$188.74 million	0.01	-$2.64 million	($229.80)	-0.31
Owens Corning	$10.98 billion	0.90	$647.00 million	($5.72)	-21.12

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

Analyst Ratings

This is a summary of current recommendations and price targets for American Biltrite and Owens Corning, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Biltrite	0	0	0	0	0.00
Owens Corning	1	6	10	0	2.53

Owens Corning has a consensus target price of $149.75, indicating a potential upside of 23.94%. Given Owens Corning’s stronger consensus rating and higher possible upside, analysts plainly believe Owens Corning is more favorable than American Biltrite.

Summary

Owens Corning beats American Biltrite on 12 of the 14 factors compared between the two stocks.

About American Biltrite

American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.

About Owens Corning

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.