Contrasting Owens Corning (NYSE:OC) and Latham Group (NASDAQ:SWIM)

Owens Corning (NYSE:OC) and Latham Group (NASDAQ:SWIM) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Valuation and Earnings

This table compares Owens Corning and Latham Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Owens Corning	$10.98 billion	1.06	$647.00 million	$3.85	36.01
Latham Group	$508.52 million	1.70	-$17.86 million	($0.12)	-61.67

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

Volatility & Risk

Owens Corning has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Latham Group has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of Owens Corning shares are held by institutional investors. Comparatively, 84.0% of Latham Group shares are held by institutional investors. 0.8% of Owens Corning shares are held by insiders. Comparatively, 8.6% of Latham Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Owens Corning	2.98%	24.49%	8.85%
Latham Group	-2.54%	-3.35%	-1.61%

Analyst Ratings

This is a summary of recent recommendations and price targets for Owens Corning and Latham Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owens Corning	0	5	9	0	2.64
Latham Group	2	0	3	0	2.20

Owens Corning presently has a consensus price target of $183.55, suggesting a potential upside of 32.39%. Latham Group has a consensus price target of $7.95, suggesting a potential upside of 7.43%. Given Owens Corning’s stronger consensus rating and higher possible upside, research analysts plainly believe Owens Corning is more favorable than Latham Group.

Summary

Owens Corning beats Latham Group on 11 of the 14 factors compared between the two stocks.

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.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.