Gafisa vs Owens Corning Which Performs Better?

Gafisa and Owens Corning are two companies operating in the construction and building materials industries, with their stocks being actively traded in the stock market. Gafisa, a Brazilian real estate development company, has shown volatility in its stock performance due to fluctuations in the housing market. On the other hand, Owens Corning, a global leader in insulation, roofing, and composites, has demonstrated more stability and growth potential. Investors looking to diversify their portfolio may consider these two stocks for potential returns.

Gafisa or Owens Corning?

When comparing Gafisa and Owens Corning, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Gafisa and Owens Corning.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Gafisa has a dividend yield of 0.6%, while Owens Corning has a dividend yield of 1.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Gafisa reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Owens Corning reports a 5-year dividend growth of 26.98% year and a payout ratio of 19.50%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Gafisa P/E ratio at -5.64 and Owens Corning's P/E ratio at 16.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Gafisa P/B ratio is 0.13 while Owens Corning's P/B ratio is 3.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Gafisa has seen a 5-year revenue growth of -0.94%, while Owens Corning's is 0.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Gafisa's ROE at -2.58% and Owens Corning's ROE at 19.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.49 for Gafisa and $193.16 for Owens Corning. Over the past year, Gafisa's prices ranged from $0.46 to $6.94, with a yearly change of 1408.70%. Owens Corning's prices fluctuated between $129.25 and $199.54, with a yearly change of 54.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.