NCI Building Systems (NYSE:NCS) vs. Real Goods Solar (RGSE) Head to Head Analysis

Real Goods Solar (NASDAQ: RGSE) and NCI Building Systems (NYSE:NCS) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitabiliy, earnings and institutional ownership.

Profitability

This table compares Real Goods Solar and NCI Building Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Real Goods Solar -159.31% -575.03% -85.04%
NCI Building Systems 3.50% 20.84% 5.75%

Insider & Institutional Ownership

6.0% of Real Goods Solar shares are held by institutional investors. Comparatively, 92.3% of NCI Building Systems shares are held by institutional investors. 0.2% of Real Goods Solar shares are held by company insiders. Comparatively, 1.8% of NCI Building Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Real Goods Solar has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, NCI Building Systems has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Earnings and Valuation

This table compares Real Goods Solar and NCI Building Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Real Goods Solar $16.14 million 0.43 -$10.95 million ($496.98) 0.00
NCI Building Systems $1.75 billion 0.72 $156.28 million $0.86 20.52

NCI Building Systems has higher revenue and earnings than Real Goods Solar. Real Goods Solar is trading at a lower price-to-earnings ratio than NCI Building Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Real Goods Solar and NCI Building Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Real Goods Solar 0 0 0 0 N/A
NCI Building Systems 0 2 3 0 2.60

NCI Building Systems has a consensus price target of $18.50, indicating a potential upside of 4.82%. Given NCI Building Systems’ higher probable upside, analysts plainly believe NCI Building Systems is more favorable than Real Goods Solar.

Summary

NCI Building Systems beats Real Goods Solar on 11 of the 12 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. is a residential and commercial solar energy engineering, procurement, and construction company. The Company offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals and warranty and customer satisfaction activities. Its solar energy systems use solar photovoltaic (PV) modules. The Company operates in three segments: Residential – the installation of solar systems for homeowners, including lease financing thereof, and for small businesses (small commercial) in the continental United States; Sunetric – the installation of solar systems for both homeowners and small business owners (small commercial) in Hawaii, and Other – retail store and corporate operations.

About NCI Building Systems

NCI Building Systems, Inc. is a manufacturer and marketer of metal products in North America. The Company’s operating segments include Engineered building systems, Metal components and Metal coil coating. The Engineered building systems segment is engaged in the manufacturing of main frames and long bay systems, and engineering and drafting. The Metal components segment’s products include metal roof and wall panels, doors, metal partitions, metal trim, insulated metal panel (IMP) products and other related accessories. The Company manufactures and distributes a range of metal products for the non-residential construction market. It operates in the United States, Mexico, Canada and China. The Company provides metal coil coating services, and designs, engineers, manufactures and markets metal components and engineered building systems. It also provides metal coil coating services for commercial and construction applications, servicing both internal and external customers.

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