Contrasting Owens Corning (NYSE:OC) & UFP Industries (NASDAQ:UFPI)

Owens Corning (NYSE:OC) and UFP Industries (NASDAQ:UFPI) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Owens Corning and UFP Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owens Corning	1	6	9	1	2.59
UFP Industries	0	3	3	0	2.50

Owens Corning currently has a consensus target price of $163.25, suggesting a potential upside of 10.36%. UFP Industries has a consensus target price of $103.75, suggesting a potential upside of 16.84%. Given UFP Industries’ higher possible upside, analysts plainly believe UFP Industries is more favorable than Owens Corning.

Valuation & Earnings

This table compares Owens Corning and UFP Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Owens Corning	$10.10 billion	1.16	-$522.00 million	($8.06)	-18.35
UFP Industries	$6.32 billion	0.77	$294.79 million	$4.36	20.37

UFP Industries has lower revenue, but higher earnings than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than UFP Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Owens Corning pays an annual dividend of $3.16 per share and has a dividend yield of 2.1%. UFP Industries pays an annual dividend of $1.44 per share and has a dividend yield of 1.6%. Owens Corning pays out -39.2% of its earnings in the form of a dividend. UFP Industries pays out 33.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Owens Corning has increased its dividend for 10 consecutive years and UFP Industries has increased its dividend for 5 consecutive years. Owens Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Owens Corning and UFP Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Owens Corning	-6.81%	20.52%	6.21%
UFP Industries	3.99%	8.00%	6.11%

Volatility & Risk

Owens Corning has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, UFP Industries has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of Owens Corning shares are owned by institutional investors. Comparatively, 81.8% of UFP Industries shares are owned by institutional investors. 0.9% of Owens Corning shares are owned by insiders. Comparatively, 2.5% of UFP Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Owens Corning beats UFP Industries on 12 of the 18 factors compared between the two stocks.

About Owens Corning

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.

About UFP Industries

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards. The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films. The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.