USG Corporation (NYSE: USG) and FORTERRA INC (NASDAQ:FRTA) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares USG Corporation and FORTERRA INC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USG Corporation $3.08 billion 1.49 $487.00 million $3.10 10.33
FORTERRA INC $1.57 billion 0.20 $160.18 million N/A N/A

USG Corporation has higher revenue and earnings than FORTERRA INC.

Analyst Recommendations

This is a summary of current ratings and price targets for USG Corporation and FORTERRA INC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USG Corporation 2 11 1 0 1.93
FORTERRA INC 0 6 3 0 2.33

USG Corporation currently has a consensus target price of $30.46, suggesting a potential downside of 4.84%. FORTERRA INC has a consensus target price of $14.88, suggesting a potential upside of 201.11%. Given FORTERRA INC’s stronger consensus rating and higher probable upside, analysts clearly believe FORTERRA INC is more favorable than USG Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
USG Corporation 14.94% 13.57% 6.20%
FORTERRA INC -4.72% -45.03% -3.19%

Institutional and Insider Ownership

87.0% of USG Corporation shares are held by institutional investors. 0.7% of USG Corporation shares are held by company insiders. Comparatively, 0.3% of FORTERRA INC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

USG Corporation beats FORTERRA INC on 8 of the 11 factors compared between the two stocks.

About USG Corporation

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.

About FORTERRA INC

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.

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