NCI Building Systems (NYSE: NCS) and Real Goods Solar (NASDAQ:RGSE) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, valuation, institutional ownership, earnings and analyst recommendations.
Valuation and Earnings
This table compares NCI Building Systems and Real Goods Solar’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NCI Building Systems||$1.75 billion||0.69||$156.28 million||$0.86||19.77|
|Real Goods Solar||$16.14 million||0.38||-$10.95 million||($496.98)||0.00|
NCI Building Systems has higher revenue and earnings than Real Goods Solar. Real Goods Solar is trading at a lower price-to-earnings ratio than NCI Building Systems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
93.1% of NCI Building Systems shares are owned by institutional investors. Comparatively, 6.0% of Real Goods Solar shares are owned by institutional investors. 1.8% of NCI Building Systems shares are owned by insiders. Comparatively, 0.2% of Real Goods Solar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares NCI Building Systems and Real Goods Solar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NCI Building Systems||3.50%||20.84%||5.75%|
|Real Goods Solar||-159.31%||-575.03%||-85.04%|
This is a summary of recent ratings and recommmendations for NCI Building Systems and Real Goods Solar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NCI Building Systems||0||2||4||0||2.67|
|Real Goods Solar||0||0||0||0||N/A|
NCI Building Systems presently has a consensus price target of $18.50, indicating a potential upside of 8.82%. Given NCI Building Systems’ higher probable upside, equities analysts plainly believe NCI Building Systems is more favorable than Real Goods Solar.
Volatility & Risk
NCI Building Systems has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Real Goods Solar has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.
NCI Building Systems beats Real Goods Solar on 11 of the 12 factors compared between the two stocks.
NCI Building Systems Company Profile
NCI Building Systems, Inc. is a manufacturer and marketer of metal products in North America. The Company’s operating segments include Engineered building systems, Metal components and Metal coil coating. The Engineered building systems segment is engaged in the manufacturing of main frames and long bay systems, and engineering and drafting. The Metal components segment’s products include metal roof and wall panels, doors, metal partitions, metal trim, insulated metal panel (IMP) products and other related accessories. The Company manufactures and distributes a range of metal products for the non-residential construction market. It operates in the United States, Mexico, Canada and China. The Company provides metal coil coating services, and designs, engineers, manufactures and markets metal components and engineered building systems. It also provides metal coil coating services for commercial and construction applications, servicing both internal and external customers.
Real Goods Solar Company Profile
Real Goods Solar, Inc. is a residential and commercial solar energy engineering, procurement, and construction company. The Company offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals and warranty and customer satisfaction activities. Its solar energy systems use solar photovoltaic (PV) modules. The Company operates in three segments: Residential – the installation of solar systems for homeowners, including lease financing thereof, and for small businesses (small commercial) in the continental United States; Sunetric – the installation of solar systems for both homeowners and small business owners (small commercial) in Hawaii, and Other – retail store and corporate operations.
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