Head to Head Analysis: Inno (NASDAQ:INHD) vs. Caesarstone (NASDAQ:CSTE)

Inno (NASDAQ:INHD) and Caesarstone (NASDAQ:CSTE) are both small-cap construction companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Profitability

This table compares Inno and Caesarstone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inno	-244.24%	-84.48%	-74.24%
Caesarstone	-18.44%	-19.35%	-9.18%

Analyst Recommendations

This is a summary of current ratings for Inno and Caesarstone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inno	1	0	0	0	1.00
Caesarstone	1	0	0	0	1.00

Insider & Institutional Ownership

0.2% of Inno shares are held by institutional investors. Comparatively, 33.7% of Caesarstone shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Inno and Caesarstone”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inno	$2.65 million	0.64	-$3.21 million	($0.83)	-0.16
Caesarstone	$443.22 million	0.12	-$42.83 million	($2.03)	-0.76

Inno has higher earnings, but lower revenue than Caesarstone. Caesarstone is trading at a lower price-to-earnings ratio than Inno, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Inno has a beta of -1.8, meaning that its stock price is 280% less volatile than the S&P 500. Comparatively, Caesarstone has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Summary

Caesarstone beats Inno on 6 of the 10 factors compared between the two stocks.

About Inno

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.

About Caesarstone

Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.