Financial Analysis: CSW Industrials (NYSE:CSW) versus Gibraltar Industries (NASDAQ:ROCK)

CSW Industrials (NYSE:CSW) and Gibraltar Industries (NASDAQ:ROCK) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation and Earnings

This table compares CSW Industrials and Gibraltar Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSW Industrials	$1.08 billion	4.42	$112.04 million	$7.29	40.28
Gibraltar Industries	$1.45 billion	0.82	-$44.39 million	($5.04)	-7.94

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

Insider and Institutional Ownership

82.8% of CSW Industrials shares are owned by institutional investors. Comparatively, 98.4% of Gibraltar Industries shares are owned by institutional investors. 1.2% of CSW Industrials shares are owned by company insiders. Comparatively, 0.9% of Gibraltar Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CSW Industrials and Gibraltar Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSW Industrials	10.34%	17.41%	8.90%
Gibraltar Industries	-10.43%	11.23%	4.91%

Analyst Recommendations

This is a summary of current ratings and target prices for CSW Industrials and Gibraltar Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSW Industrials	0	6	1	2	2.56
Gibraltar Industries	1	1	1	1	2.50

CSW Industrials currently has a consensus target price of $347.57, suggesting a potential upside of 18.36%. Given CSW Industrials’ stronger consensus rating and higher probable upside, research analysts plainly believe CSW Industrials is more favorable than Gibraltar Industries.

Volatility and Risk

CSW Industrials has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Summary

CSW Industrials beats Gibraltar Industries on 11 of the 14 factors compared between the two stocks.

About CSW Industrials

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The Contractor Solutions segment provides condensate pads, pans, pumps, switches, and traps; cements, diffusers, grilles, registers, solvents, thread sealants, and vents; line set covers; refrigerant caps; wire pulling head tools; electrical protection, chemical maintenance, and installation supplies for HVAC; ductless mini-split systems installation support tools and accessories; and drain waste and vent system products for use in HVAC/R, plumbing, general industrial, architecturally specified building products. The Engineered Building Solutions segment offers architectural railings and associated services; fire and smoke protection solutions; and pre-engineered and custom architectural building components for use in architecturally specified building products. The Specialized Reliability Solutions segment provides compounds, lubricants, lubricant management products, and sealants; desiccant breather filtration products; and contamination control, industrial maintenance and repair, rail friction modifiers, sealants, and operations solutions for use in energy, general industrial, mining, and rail transportation. The company was incorporated in 2014 and is headquartered in Dallas, Texas.

About Gibraltar Industries

Gibraltar Industries, Inc. manufactures and provides products and services for the renewable energy, residential, agtech, and infrastructure markets in the United States and internationally. It operates through four segments: Renewables, Residential, Agtech, and Infrastructure. The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems for commercial and distributed generation scale solar installations. The Residential segment offers roof and foundation ventilation products and accessories; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, pipe flashings, and remote-controlled deck awnings and valances for sun protection. The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, construction, maintenance, and support of greenhouses; and indoor growing operations for retail, fruits and vegetables, flowers, cannabis, commercial, institutional and conservatories, and car wash structure applications. The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. It serves solar developers, home improvement retailers, wholesalers, distributors, and contractors, as well as institutional and commercial growers of fruit, vegetables, flowers, and plants. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York.