Contrasting Fletcher Building (FRCEF) and Its Peers

Fletcher Building (OTCMKTS:FRCEF) is one of 74 public companies in the “Construction Materials” industry, but how does it weigh in compared to its rivals? We will compare Fletcher Building to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Profitability

This table compares Fletcher Building and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fletcher Building	N/A	N/A	N/A
Fletcher Building Competitors	4.71%	8.19%	5.10%

Valuation & Earnings

This table compares Fletcher Building and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fletcher Building	N/A	N/A	4.27
Fletcher Building Competitors	$6.78 billion	$651.37 million	31.57

Fletcher Building’s rivals have higher revenue and earnings than Fletcher Building. Fletcher Building is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

23.8% of Fletcher Building shares are held by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are held by institutional investors. 10.0% of shares of all “Construction Materials” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Fletcher Building and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fletcher Building	1	0	0	0	1.00
Fletcher Building Competitors	406	2055	2837	83	2.48

As a group, “Construction Materials” companies have a potential upside of 406.93%. Given Fletcher Building’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Fletcher Building has less favorable growth aspects than its rivals.

Summary

Fletcher Building rivals beat Fletcher Building on 11 of the 11 factors compared.

About Fletcher Building

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally. It operates through Building Products, Distribution, Concrete, Residential and Development, Construction, and Australia segments. The Building Products segment manufactures, markets, and distributes building products used to build homes; and buildings and infrastructure, including insulations, plasterboards, laminate surfaces, and plastic and concrete piping for the commercial and residential markets. The Distribution segment distributes building, plumbing, and pipeline products under the PlaceMakers, Mico, and TUMU brands. The Concrete segment engages in the extraction of aggregates, and production of cement and concrete. The Residential and Development segment builds residential homes and apartments; and develops and sells residential and commercial land. The Construction segment builds and maintains public and commercial buildings, transport and utilities infrastructure, and buildings and infrastructure, as well as designs, constructs, and maintains roads and civil infrastructure. The Australia segment manufactures and distributes building materials, such as insulation, plasterboard, laminate surfaces, steel roofing, and plastic and concrete piping for a range of industries across Australia. The company was founded in 1909 and is headquartered in Auckland, New Zealand.