Holcim (OTCMKTS:HCMLY – Get Free Report) and Frontdoor (NASDAQ:FTDR – Get Free Report) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Profitability
This table compares Holcim and Frontdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Holcim | N/A | N/A | N/A |
| Frontdoor | 12.18% | 120.79% | 14.09% |
Institutional & Insider Ownership
0.0% of Holcim shares are held by institutional investors. 1.5% of Frontdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Holcim | $18.97 billion | 2.35 | $15.90 billion | N/A | N/A |
| Frontdoor | $2.09 billion | 2.13 | $255.00 million | $3.41 | 18.53 |
Holcim has higher revenue and earnings than Frontdoor.
Volatility & Risk
Holcim has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Holcim and Frontdoor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Holcim | 1 | 5 | 4 | 3 | 2.69 |
| Frontdoor | 0 | 4 | 2 | 0 | 2.33 |
Holcim currently has a consensus price target of $16.80, suggesting a potential upside of 6.87%. Frontdoor has a consensus price target of $65.75, suggesting a potential upside of 4.07%. Given Holcim’s stronger consensus rating and higher probable upside, research analysts clearly believe Holcim is more favorable than Frontdoor.
Summary
Holcim beats Frontdoor on 8 of the 13 factors compared between the two stocks.
About Holcim
Holcim AG, together with its subsidiaries, operates as a building materials and solutions company worldwide. It operates through North America; Latin America; Europe; Asia, Middle East & Africa; and Solutions & Products segments. The company offers cement, clinker, and other cementitious materials; ready-mix concrete; aggregates, such as crushed stone, gravel, and sand; and precast, concrete products, asphalts, mortars, roofing systems, insulation tile adhesives, facade solutions, and contracting and services. It also engages in distribution and retail activities comprising product availability and deliveries, in-store animation and shopping experience, one-stop retail shop, digital services and solutions, and financing and cash-flow solutions; and waste management services. The company's products are used in infrastructure projects, such as tunnels, railways and train stations, airports and ports, and bridges; housing projects, including individual and collective housing; commercial projects comprising offices, retail, and public buildings; and industrial projects consisting of renewable energy, oil and gas, and mining. It sells under the ECOPact, ECOPlanet, ECOCycle, Airium, DYNAMax, Aggneo, Ductal, Hydromedia, TectorPrint, Aggregate Industries, Disensa, Duro-Last, Elevate, Geocycle, Holcim, Lafarge, Malarkey Roofing Products, and PRB Group brands. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim AG in May 2021. The company was founded in 1833 and is headquartered in Zug, Switzerland.
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.
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