Analyzing Resideo Technologies (NYSE:REZI) and Owens Corning (NYSE:OC)

Owens Corning (NYSE:OC) and Resideo Technologies (NYSE:REZI) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Risk & Volatility

Owens Corning has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Valuation & Earnings

This table compares Owens Corning and Resideo Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Owens Corning	$10.10 billion	0.97	-$522.00 million	($8.06)	-15.35
Resideo Technologies	$7.47 billion	0.37	-$527.00 million	$2.26	8.10

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

Institutional and Insider Ownership

88.4% of Owens Corning shares are held by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are held by institutional investors. 0.9% of Owens Corning shares are held by insiders. Comparatively, 1.6% of Resideo Technologies shares are held 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Owens Corning and Resideo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owens Corning	1	5	9	3	2.78
Resideo Technologies	1	2	2	0	2.20

Owens Corning currently has a consensus price target of $164.15, indicating a potential upside of 32.67%. Resideo Technologies has a consensus price target of $37.50, indicating a potential upside of 104.96%. Given Resideo Technologies’ higher possible upside, analysts clearly believe Resideo Technologies is more favorable than Owens Corning.

Profitability

This table compares Owens Corning and Resideo Technologies’ 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%
Resideo Technologies	5.37%	17.79%	5.13%

Summary

Owens Corning beats Resideo Technologies on 8 of the 15 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 Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.