Owens Corning (OC) & ReTo Eco-Solutions (RETO) Critical Comparison

Owens Corning (NYSE:OC) and ReTo Eco-Solutions (NASDAQ:RETO) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

94.9% of Owens Corning shares are owned by institutional investors. Comparatively, 0.4% of ReTo Eco-Solutions shares are owned by institutional investors. 1.6% of Owens Corning shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Owens Corning and ReTo Eco-Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Owens Corning $6.38 billion 0.81 $289.00 million $4.40 10.77
ReTo Eco-Solutions $35.55 million 1.89 $5.97 million N/A N/A

Owens Corning has higher revenue and earnings than ReTo Eco-Solutions.

Dividends

Owens Corning pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. ReTo Eco-Solutions does not pay a dividend. Owens Corning pays out 19.1% of its earnings in the form of a dividend. Owens Corning has increased its dividend for 3 consecutive years.

Profitability

This table compares Owens Corning and ReTo Eco-Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Owens Corning 5.33% 12.37% 5.31%
ReTo Eco-Solutions N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Owens Corning and ReTo Eco-Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Owens Corning 1 7 9 0 2.47
ReTo Eco-Solutions 0 0 0 0 N/A

Owens Corning presently has a consensus price target of $75.26, suggesting a potential upside of 58.89%. Given Owens Corning’s higher possible upside, research analysts plainly believe Owens Corning is more favorable than ReTo Eco-Solutions.

Summary

Owens Corning beats ReTo Eco-Solutions on 11 of the 13 factors compared between the two stocks.

About Owens Corning

Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential and commercial building materials worldwide. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in pipe, roofing shingles, sporting goods, consumer electronics, telecommunications cables, boats, aviation, defense, automotive, industrial containers, and wind-energy applications in the building and construction, transportation, consumer, industrial, and power and energy markets. The Insulation segment manufactures and sells fiberglass insulation into residential, commercial, industrial, and other markets for thermal and acoustical applications; and manufactures and sells glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Roofing segment manufactures and sells residential roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials. This segment sells its products through home centers, lumberyards, retailers, distributors, and contractors, as well as to roofing contractors for built-up roofing asphalt systems and to manufacturers in automotive, chemical, rubber, and construction industries. Owens Corning was founded in 1938 and is headquartered in Toledo, Ohio.

About ReTo Eco-Solutions

ReTo Eco-Solutions, Inc. manufactures and distributes construction materials primarily in China. Its products include aggregates, bricks, pavers, tiles, river sand, and granite; ground works materials that assist in water absorption, flood control, and water retention; and landscape retaining materials that are used for gardens, roads, bridges, city squares, retaining walls, and slope construction. The company also offers hydraulic engineering materials for hydraulic ecological projects, such as slope protection and river transformation; wall materials for insulation, decoration, and for building walls; and construction materials manufacturing equipment, such as automated production equipment with hydraulic integration in China, South Asia, North America, the Middle East, North Africa, and Southeast Asia. In addition, it provides construction solutions, including project consulting, design, and installation. Further, the company undertakes municipal construction projects, including sponge city projects, sewage pipeline construction, public plaza construction, and landscaping. ReTo Eco-Solutions, Inc. was incorporated in 2015 and is headquartered in Beijing, the People's Republic of China.

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