Critical Analysis: Quanex Building Products (NYSE:NX) vs. OneConstruction Group (NASDAQ:ONEG)

Quanex Building Products (NYSE:NX) and OneConstruction Group (NASDAQ:ONEG) are both small-cap construction companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Quanex Building Products and OneConstruction Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quanex Building Products	-13.65%	12.46%	5.03%
OneConstruction Group	N/A	N/A	N/A

Insider & Institutional Ownership

97.5% of Quanex Building Products shares are held by institutional investors. 2.2% of Quanex Building Products shares 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.

Valuation & Earnings

This table compares Quanex Building Products and OneConstruction Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quanex Building Products	$1.84 billion	0.44	-$250.81 million	($5.49)	-3.19
OneConstruction Group	N/A	N/A	N/A	N/A	N/A

OneConstruction Group has lower revenue, but higher earnings than Quanex Building Products.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Quanex Building Products and OneConstruction Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quanex Building Products	1	1	1	0	2.00
OneConstruction Group	1	0	0	0	1.00

Quanex Building Products presently has a consensus price target of $28.00, indicating a potential upside of 59.73%. Given Quanex Building Products’ stronger consensus rating and higher probable upside, equities analysts clearly believe Quanex Building Products is more favorable than OneConstruction Group.

Summary

Quanex Building Products beats OneConstruction Group on 8 of the 9 factors compared between the two stocks.

About Quanex Building Products

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, rest of Europe, Canada, Asia, the United Kingdom, and internationally. The company operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. It offers flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products, as well as cabinet doors and other components for original equipment manufacturers (OEMs) in the kitchen and bathroom cabinet industry. In addition, the company provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. It sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.

About OneConstruction Group

OneConstruction Group is a structural steelwork contractor principally in Hong Kong. The Company, through its subsidiaries, specializes in the procurement and installation of structural steel for a diverse range of construction projects, serving both public and private sector clients. OneConstruction Group is based in NEW YORK.