Head to Head Review: Rockwool A/S (OTCMKTS:RKWBF) vs. Trex (NYSE:TREX)

Rockwool A/S (OTCMKTS:RKWBF) and Trex (NYSE:TREX) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Profitability

This table compares Rockwool A/S and Trex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwool A/S	N/A	N/A	N/A
Trex	18.76%	31.26%	19.60%

Insider and Institutional Ownership

7.4% of Rockwool A/S shares are held by institutional investors. Comparatively, 96.0% of Trex shares are held by institutional investors. 0.7% of Trex shares are held by company 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 Rockwool A/S and Trex’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwool A/S	N/A	N/A	N/A	$5.65	63.74
Trex	$1.09 billion	9.13	$205.38 million	$1.89	48.68

Trex has higher revenue and earnings than Rockwool A/S. Trex is trading at a lower price-to-earnings ratio than Rockwool A/S, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rockwool A/S and Trex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwool A/S	1	0	0	0	1.00
Trex	2	8	8	0	2.33

Trex has a consensus price target of $88.72, suggesting a potential downside of 3.57%. Given Trex’s stronger consensus rating and higher possible upside, analysts clearly believe Trex is more favorable than Rockwool A/S.

Summary

Trex beats Rockwool A/S on 9 of the 11 factors compared between the two stocks.

About Rockwool A/S

Rockwool A/S produces and sells stone wool insulation products in Western Europe, Eastern Europe, North America, Asia, and internationally. The company operates through two segments, Insulation and Systems segments. It offers fire-safe stone wool insulation under the ROCKWOOL brand name; acoustic solutions for ceilings and walls under the Rockfon brand name; board materials that are applied in ventilated constructions for facade cladding, soffits, roof detailing, and fascia under the Rockpanel brand name; and rootzone management solutions for controlled environment agriculture under the Grodan brand name. The company also provides stone wool-based products used in the areas of rainwater management and prefab building systems, railway vibration control, automotive, and industrial OEM applications under the ROCKWOOL, Rockdelta, and Lapinus brand names. Rockwool A/S was founded in 1909 and is based in Hedehusene, Denmark.

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.