Financial Analysis: Compagnie de Saint-Gobain (OTCMKTS:CODYY) versus Trex (NYSE:TREX)

Trex (NYSE:TREX) and Compagnie de Saint-Gobain (OTCMKTS:CODYY) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

96.0% of Trex shares are owned by institutional investors. Comparatively, 0.0% of Compagnie de Saint-Gobain shares are owned by institutional investors. 0.7% of Trex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Trex and Compagnie de Saint-Gobain’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trex	$1.09 billion	9.13	$205.38 million	$1.89	48.68
Compagnie de Saint-Gobain	N/A	N/A	N/A	$0.34	49.63

Trex has higher revenue and earnings than Compagnie de Saint-Gobain. Trex is trading at a lower price-to-earnings ratio than Compagnie de Saint-Gobain, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trex and Compagnie de Saint-Gobain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trex	18.76%	31.26%	19.60%
Compagnie de Saint-Gobain	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Trex and Compagnie de Saint-Gobain, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trex	2	8	8	0	2.33
Compagnie de Saint-Gobain	0	0	1	0	3.00

Trex presently has a consensus price target of $88.72, suggesting a potential downside of 3.57%. Given Trex’s higher probable upside, equities analysts plainly believe Trex is more favorable than Compagnie de Saint-Gobain.

Summary

Trex beats Compagnie de Saint-Gobain on 9 of the 11 factors compared between the two stocks.

About Trex

Trex Company, Inc. manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; Trex Signature aluminum railing for a contemporary look; and Trex Select T-Rail railing products. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.

About Compagnie de Saint-Gobain

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for the construction and industrial markets worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and vehicles under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, and Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands. It also provides mortars and construction chemicals under the Weber, Chryso, and GCP brands; exterior products comprising asphalt and composite shingles, solar roofing solutions, roll roofing systems, and accessories under the CertainTeed and Brasilit brands; and pipes under the PAM brand, as well as abrasives, adhesives, sealants, tapes, composites, and films. In addition, the company provides interior and exterior systems for construction and housing sectors; ceramics under the SEFPRO brand; polymer shakes and shingle, and insulation cladding solutions; and barriers, terraces, and balustrades. Further, it distributes heavy building materials; plumbing, heating, ventilation, and sanitaryware products; timber and byproducts; bathrooms and kitchens; and site equipment, PPEs, and tools. The company was founded in 1665 and is headquartered in Courbevoie, France.