Analyzing Knife River (NYSE:KNF) and James Hardie Industries (NYSE:JHX)

Knife River (NYSE:KNF) and James Hardie Industries (NYSE:JHX) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares Knife River and James Hardie Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knife River	4.99%	10.27%	4.41%
James Hardie Industries	2.70%	13.52%	5.81%

Risk and Volatility

Knife River has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, James Hardie Industries has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Insider and Institutional Ownership

80.1% of Knife River shares are owned by institutional investors. Comparatively, 8.0% of James Hardie Industries shares are owned by institutional investors. 0.3% of Knife River shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Knife River and James Hardie Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knife River	$3.15 billion	1.60	$157.10 million	$2.76	32.22
James Hardie Industries	$3.88 billion	2.70	$424.00 million	$0.27	90.36

James Hardie Industries has higher revenue and earnings than Knife River. Knife River is trading at a lower price-to-earnings ratio than James Hardie Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Knife River and James Hardie Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knife River	1	3	6	0	2.50
James Hardie Industries	0	4	12	0	2.75

Knife River presently has a consensus price target of $96.43, suggesting a potential upside of 8.43%. James Hardie Industries has a consensus price target of $26.71, suggesting a potential upside of 9.46%. Given James Hardie Industries’ stronger consensus rating and higher possible upside, analysts plainly believe James Hardie Industries is more favorable than Knife River.

Summary

James Hardie Industries beats Knife River on 10 of the 14 factors compared between the two stocks.

About Knife River

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.

About James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.