Critical Review: Forterra (FRTA) & Texas Industries (TXI)
Forterra (NASDAQ: FRTA) and Texas Industries (NYSE:TXI) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
This is a summary of recent ratings and target prices for Forterra and Texas Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Forterra currently has a consensus price target of $11.83, indicating a potential upside of 4.72%. Texas Industries has a consensus price target of $82.00, indicating a potential upside of Infinity. Given Texas Industries’ higher possible upside, analysts clearly believe Texas Industries is more favorable than Forterra.
Insider & Institutional Ownership
99.9% of Forterra shares are owned by institutional investors. 0.3% of Forterra shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Forterra and Texas Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Forterra||$1.36 billion||0.53||-$7.60 million||($1.69)||-6.69|
Texas Industries has lower revenue, but higher earnings than Forterra.
This table compares Forterra and Texas Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Forterra beats Texas Industries on 5 of the 9 factors compared between the two stocks.
Forterra, Inc. is a manufacturer of pipe and precast products. The Company offers products for a range of water-related infrastructure applications, including water transmission, distribution and drainage. The Company operates approximately 95 facilities. Its products are available in the United States and Eastern Canada.
About Texas Industries
Texas Industries, Inc. is a supplier of construction materials in the southwestern United States. The Company operates in three segments: cement, aggregates and consumer products. Its cement segment produces gray portland cement and specialty cements. The Company’s cement production and distribution facilities are concentrated primarily in Texas and California. Its aggregates segment produces natural aggregates, including sand, gravel and crushed limestone. The Company’s consumer products segment produces ready-mix concrete. It is also a supplier of natural aggregates and ready-mix concrete in Texas and northern Louisiana and in Oklahoma and Arkansas. As of May 31, 2013, the Company had 123 manufacturing facilities in five states. During the fiscal year ended May 31, 2013 (fiscal 2013), it produced approximately 4.3 million tons of finished cement. The Company produced approximately 14.2 million tons of natural aggregates during fiscal 2013.
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