Owens Corning vs Rockwool Which Is More Profitable?

Owens Corning and Rockwool are two leading companies in the building materials industry. Owens Corning specializes in insulation products, roofing materials, and fiberglass composites. On the other hand, Rockwool focuses on stone wool insulation solutions. Both companies have seen steady growth in recent years driven by the increasing demand for energy-efficient and sustainable building materials. Investors looking to capitalize on the growth in the construction sector may consider comparing Owens Corning and Rockwool stocks to determine the best investment opportunity.

Owens Corning or Rockwool?

When comparing Owens Corning and Rockwool, 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 Rockwool.

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 Rockwool has a dividend yield of 12.34%. 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, Rockwool reports a 5-year dividend growth of 7.75% 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 Rockwool's P/E ratio at 14.62. 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 Rockwool's P/B ratio is 2.53.

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 Rockwool's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Owens Corning's ROE at 19.28% and Rockwool's ROE at 17.78%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $194.83 for Owens Corning and kr2580.00 for Rockwool. Over the past year, Owens Corning's prices ranged from $138.70 to $214.53, with a yearly change of 54.67%. Rockwool's prices fluctuated between kr1742.00 and kr3215.00, with a yearly change of 84.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.