Owens Corning vs Gafisa Which Is More Profitable?

Owens Corning and Gafisa are two rival companies operating in the construction and building materials industry. Owens Corning is a global leader in insulation, roofing, and fiberglass composites, while Gafisa is a Brazilian real estate development company. Both companies have experienced fluctuations in their stock prices due to market trends, economic conditions, and industry competition. Investors looking to invest in the construction sector may need to carefully analyze the financial performance and growth prospects of Owens Corning and Gafisa before making investment decisions.

Owens Corning or Gafisa?

When comparing Owens Corning and Gafisa, 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 Owens Corning and Gafisa.

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. Owens Corning has a dividend yield of 1.22%, while Gafisa has a dividend yield of 1.86%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Owens Corning reports a 5-year dividend growth of 26.98% year and a payout ratio of 19.50%. On the other hand, Gafisa reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Owens Corning P/E ratio at 16.54 and Gafisa's P/E ratio at -3.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Owens Corning P/B ratio is 3.05 while Gafisa's P/B ratio is 0.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Owens Corning has seen a 5-year revenue growth of 0.68%, while Gafisa's is -0.94%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Owens Corning's ROE at 19.28% and Gafisa's ROE at -1.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $194.83 for Owens Corning and $0.15 for Gafisa. Over the past year, Owens Corning's prices ranged from $138.70 to $214.53, with a yearly change of 54.67%. Gafisa's prices fluctuated between $0.15 and $6.94, with a yearly change of 4465.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.