Financial Analysis: Arcosa (NYSE:ACA) versus American Biltrite (OTCMKTS:ABLT)

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

Analyst Ratings

This is a summary of current ratings for Arcosa and American Biltrite, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcosa	0	0	3	0	3.00
American Biltrite	0	0	0	0	0.00

Arcosa presently has a consensus price target of $104.00, indicating a potential upside of 15.89%. Given Arcosa’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Arcosa is more favorable than American Biltrite.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arcosa	3.00%	5.59%	3.02%
American Biltrite	-1.40%	-10.96%	-2.20%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcosa	$2.60 billion	1.68	$93.70 million	$1.59	56.44
American Biltrite	$188.74 million	0.01	-$2.64 million	($81.67)	-0.88

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

Volatility & Risk

Arcosa has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, American Biltrite has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500.

Insider and Institutional Ownership

90.7% of Arcosa shares are owned by institutional investors. 2.0% of Arcosa shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Arcosa beats American Biltrite on 14 of the 14 factors compared between the two stocks.

About Arcosa

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and transportation equipment; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.

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.