CRH PLC (NYSE: CRH) and USG Corporation (NYSE:USG) are both mid-cap construction companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitabiliy, earnings, dividends, risk and analyst recommendations.

Insider & Institutional Ownership

4.5% of CRH PLC shares are owned by institutional investors. Comparatively, 88.8% of USG Corporation shares are owned by institutional investors. 0.7% of USG Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares CRH PLC and USG Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CRH PLC $30.95 billion 0.95 $3.54 billion N/A N/A
USG Corporation $3.04 billion 1.39 $514.00 million $3.36 8.65

CRH PLC has higher revenue and earnings than USG Corporation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CRH PLC and USG Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CRH PLC 1 3 3 0 2.29
USG Corporation 3 8 6 0 2.18

USG Corporation has a consensus target price of $31.53, indicating a potential upside of 8.47%. Given USG Corporation’s higher probable upside, analysts clearly believe USG Corporation is more favorable than CRH PLC.

Dividends

CRH PLC pays an annual dividend of $0.71 per share and has a dividend yield of 2.0%. USG Corporation does not pay a dividend.

Profitability

This table compares CRH PLC and USG Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CRH PLC N/A N/A N/A
USG Corporation 15.23% 14.57% 6.02%

Volatility and Risk

CRH PLC has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, USG Corporation has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Summary

USG Corporation beats CRH PLC on 9 of the 13 factors compared between the two stocks.

CRH PLC Company Profile

CRH public limited company (CRH plc) is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.

USG Corporation Company Profile

USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. The Company’s segments include Gypsum, Ceilings and USG Boral Building Products (UBBP). It produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. Its products are distributed through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. Gypsum segment manufactures and markets gypsum and related products in the United States, Canada, Mexico and Latin America. Ceilings segment manufactures and markets interior systems products in the United States, Canada, Mexico and Latin America. The UBBP segment manufactures, distributes and sells certain building products, mines raw gypsum and sells natural and synthetic gypsum throughout Asia, Australasia and the Middle East.

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