Carpenter Technology Corporation (NYSE: CRS) and Gibraltar Industries (NASDAQ:ROCK) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Dividends

Carpenter Technology Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Gibraltar Industries does not pay a dividend. Carpenter Technology Corporation pays out 72.0% of its earnings in the form of a dividend.

Volatility and Risk

Carpenter Technology Corporation has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Valuation and Earnings

This table compares Carpenter Technology Corporation and Gibraltar Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Carpenter Technology Corporation $1.80 billion 1.16 $213.50 million $1.00 44.75
Gibraltar Industries $958.80 million 0.97 $109.22 million $0.71 41.13

Carpenter Technology Corporation has higher revenue and earnings than Gibraltar Industries. Gibraltar Industries is trading at a lower price-to-earnings ratio than Carpenter Technology Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.8% of Carpenter Technology Corporation shares are owned by institutional investors. 3.6% of Carpenter Technology Corporation shares are owned by insiders. Comparatively, 0.5% of Gibraltar Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Carpenter Technology Corporation and Gibraltar Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carpenter Technology Corporation 2.61% 4.48% 1.83%
Gibraltar Industries 2.38% 10.14% 5.09%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Carpenter Technology Corporation and Gibraltar Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carpenter Technology Corporation 0 2 3 0 2.60
Gibraltar Industries 0 0 2 0 3.00

Carpenter Technology Corporation presently has a consensus price target of $43.40, suggesting a potential downside of 3.02%. Gibraltar Industries has a consensus price target of $34.50, suggesting a potential upside of 18.15%. Given Gibraltar Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Gibraltar Industries is more favorable than Carpenter Technology Corporation.

Summary

Carpenter Technology Corporation beats Gibraltar Industries on 11 of the 16 factors compared between the two stocks.

Carpenter Technology Corporation Company Profile

Carpenter Technology Corporation is engaged in the manufacturing, fabrication and distribution of specialty metals. The Company’s segments include Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). Its SAO segment consists of alloy and stainless steel manufacturing operations. Its PEP segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business and the Latrobe and Mexico distribution businesses. It develops, manufactures and distributes cast/wrought and powder metal stainless steels, and special alloys, including high temperature (iron-nickel-cobalt base), stainless, corrosion resistant, controlled expansion alloys, ultra-high strength and implantable alloys, tool and die steels and other specialty metals, as well as cast/wrought titanium alloys. The Company manufactures and rents down-hole drilling tools and components used in the oil and gas industry.

Gibraltar Industries Company Profile

Gibraltar Industries, Inc. is a manufacturer and distributor of building products for industrial, transportation infrastructure, residential housing, renewable energy and resource conservation markets. The Company’s segments include Residential Products; Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment services residential housing construction and residential repair and remodeling activity with products including roof and foundation ventilation products, rain dispersion products and roof ventilation accessories. The Industrial and Infrastructure Products segment focuses on a range of markets, including industrial and commercial construction, automotive, airports and energy and power generation markets with products. The Renewable Energy and Conservation segment focuses on the design, engineering, manufacturing and installation of solar racking systems and commercial, institutional and retail greenhouse structures.

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