Continental Building Products (CBPX) versus Trex (TREX) Head to Head Comparison
Continental Building Products (NYSE: CBPX) and Trex (NYSE:TREX) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Institutional and Insider Ownership
92.2% of Trex shares are held by institutional investors. 0.3% of Continental Building Products shares are held by insiders. Comparatively, 1.0% of Trex shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Continental Building Products and Trex, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Continental Building Products||0||2||1||0||2.33|
Continental Building Products presently has a consensus price target of $26.50, suggesting a potential upside of 8.16%. Trex has a consensus price target of $71.75, suggesting a potential downside of 11.57%. Given Continental Building Products’ higher probable upside, equities research analysts plainly believe Continental Building Products is more favorable than Trex.
Volatility and Risk
Continental Building Products has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Trex has a beta of 2.32, suggesting that its stock price is 132% more volatile than the S&P 500.
Earnings and Valuation
This table compares Continental Building Products and Trex’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Continental Building Products||$474.02 million||1.99||$131.29 million||$1.09||22.48|
|Trex||$504.24 million||4.73||$131.61 million||$2.58||31.45|
Trex has higher revenue and earnings than Continental Building Products. Continental Building Products is trading at a lower price-to-earnings ratio than Trex, indicating that it is currently the more affordable of the two stocks.
This table compares Continental Building Products and Trex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Continental Building Products||9.16%||15.45%||7.55%|
Trex beats Continental Building Products on 13 of the 14 factors compared between the two stocks.
About Continental Building Products
Continental Building Products, Inc. is a manufacturer of gypsum wallboard and complementary finishing products. The Company operates through wallboard segment. Gypsum wallboard is a primary building material used in residential and commercial construction and in repair and remodel (R&R). It offers customers a range of gypsum wallboard products, including LiftLite, its lightweight product designed to lift and install; its Mold Defense line of products designed for protection against mold and mildew, and its Weather Defense line of moisture and mold-resistant exterior sheathing. The Company also operates a finishing products business that manufactures a line of joint compounds at its plant in Silver Grove (Kentucky) and its joint compound plant in Chambly (Quebec). The Company manufactures gypsum wallboard related products for commercial and residential buildings and houses. The Company’s manufacturing facilities are concentrated in the eastern United States and eastern Canada.
Trex Company, Inc. is a manufacturer of wood-alternative decking and railing products. The Company’s products are marketed under the brand name Trex and are manufactured in the United States. It offers a set of outdoor living products in the decking, railing, porch, fencing, trim, steel deck framing and outdoor lighting categories. Its decking products include Trex Transcend, Trex Enhance and Trex Select. The Company’s railing products include Trex Transcend Railing, Trex Select Railing and Trex Signature aluminum railing. It offers Trex Transcend Porch Flooring and Railing System, which is an integrated system of porch components and accessories. The Company offers Trex Seclusions fencing product, which consists of structural posts, bottom rail, pickets, top rail and decorative post caps. It offers a triple-coated steel deck framing system called Trex Elevations. The Company also offers outdoor lighting systems, such as Trex DeckLighting and Trex Landscape Lighting.
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