Dynamic Materials Corp. (NASDAQ: BOOM) and Gibraltar Industries (NASDAQ:ROCK) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Dynamic Materials Corp. and Gibraltar Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dynamic Materials Corp.||$162.88 million||1.17||$7.00 million||($0.57)||-22.72|
|Gibraltar Industries||$958.80 million||0.95||$109.22 million||$0.71||40.35|
Gibraltar Industries has higher revenue and earnings than Dynamic Materials Corp.. Dynamic Materials Corp. is trading at a lower price-to-earnings ratio than Gibraltar Industries, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.0% of Dynamic Materials Corp. shares are owned by institutional investors. 5.1% of Dynamic Materials Corp. shares are owned by insiders. Comparatively, 0.5% of Gibraltar Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Dynamic Materials Corp. and Gibraltar Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynamic Materials Corp.||-5.01%||-6.38%||-4.39%|
Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Gibraltar Industries does not pay a dividend. Dynamic Materials Corp. pays out -14.0% of its earnings in the form of a dividend.
Volatility and Risk
Dynamic Materials Corp. has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Dynamic Materials Corp. and Gibraltar Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynamic Materials Corp.||0||0||1||0||3.00|
Dynamic Materials Corp. currently has a consensus price target of $19.00, indicating a potential upside of 46.72%. Gibraltar Industries has a consensus price target of $34.50, indicating a potential upside of 20.42%. Given Dynamic Materials Corp.’s higher probable upside, equities analysts plainly believe Dynamic Materials Corp. is more favorable than Gibraltar Industries.
Gibraltar Industries beats Dynamic Materials Corp. on 8 of the 14 factors compared between the two stocks.
About Dynamic Materials Corp.
DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.
About Gibraltar Industries
Gibraltar Industries, Inc. is a manufacturer and distributor of building products for industrial, transportation infrastructure, residential housing, renewable energy and resource conservation markets. The Company’s segments include Residential Products; Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment services residential housing construction and residential repair and remodeling activity with products including roof and foundation ventilation products, rain dispersion products and roof ventilation accessories. The Industrial and Infrastructure Products segment focuses on a range of markets, including industrial and commercial construction, automotive, airports and energy and power generation markets with products. The Renewable Energy and Conservation segment focuses on the design, engineering, manufacturing and installation of solar racking systems and commercial, institutional and retail greenhouse structures.
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