USG Corporation (NYSE: USG) and GCP Applied Technologies (NYSE:GCP) are both mid-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitabiliy, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares USG Corporation and GCP Applied Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USG Corporation $3.08 billion 1.29 $487.00 million $3.10 8.92
GCP Applied Technologies $1.34 billion 1.64 $214.90 million $0.04 765.00

USG Corporation has higher revenue and earnings than GCP Applied Technologies. USG Corporation is trading at a lower price-to-earnings ratio than GCP Applied Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

USG Corporation has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, GCP Applied Technologies has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for USG Corporation and GCP Applied Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USG Corporation 2 11 5 0 2.17
GCP Applied Technologies 0 0 4 0 3.00

USG Corporation presently has a consensus price target of $31.00, indicating a potential upside of 12.12%. GCP Applied Technologies has a consensus price target of $35.50, indicating a potential upside of 16.01%. Given GCP Applied Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe GCP Applied Technologies is more favorable than USG Corporation.

Institutional & Insider Ownership

88.8% of USG Corporation shares are owned by institutional investors. Comparatively, 81.3% of GCP Applied Technologies shares are owned by institutional investors. 0.7% of USG Corporation shares are owned by insiders. Comparatively, 0.7% of GCP Applied Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares USG Corporation and GCP Applied Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USG Corporation 14.94% 13.57% 6.20%
GCP Applied Technologies 0.26% -44.54% 5.45%

Summary

USG Corporation beats GCP Applied Technologies on 10 of the 14 factors compared between the two stocks.

About USG Corporation

USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. The Company’s segments include Gypsum, Ceilings and USG Boral Building Products (UBBP). It produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. Its products are distributed through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. Gypsum segment manufactures and markets gypsum and related products in the United States, Canada, Mexico and Latin America. Ceilings segment manufactures and markets interior systems products in the United States, Canada, Mexico and Latin America. The UBBP segment manufactures, distributes and sells certain building products, mines raw gypsum and sells natural and synthetic gypsum throughout Asia, Australasia and the Middle East.

About GCP Applied Technologies

GCP Applied Technologies Inc. produces and sells specialty construction chemicals, specialty building materials, and packaging sealants and coatings. The Company operates through two segments: Specialty Construction Chemicals and Specialty Building Materials. The Specialty Construction Chemicals segment manufactures and markets products to manage performance of Portland cement, and materials based on Portland cement, such as concrete admixtures and cement additives, as well as concrete production management systems. The Specialty Building Materials segment manufactures and markets building envelope products, residential building products and specialty construction products. Its brands include ADVA, CBA, MIRA, ADPRUFE, DARABLEND and APPERTA.

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