Carpenter Technology Corporation (NYSE: CRS) and L.B. Foster (NASDAQ:FSTR) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Valuation and Earnings
This table compares Carpenter Technology Corporation and L.B. Foster’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Carpenter Technology Corporation||$1.80 billion||1.21||$47.00 million||$1.62||28.77|
|L.B. Foster||$483.51 million||0.48||-$141.66 million||($3.60)||-6.25|
Carpenter Technology Corporation has higher revenue and earnings than L.B. Foster. L.B. Foster is trading at a lower price-to-earnings ratio than Carpenter Technology Corporation, indicating that it is currently the more affordable of the two stocks.
Carpenter Technology Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. L.B. Foster does not pay a dividend. Carpenter Technology Corporation pays out 44.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
97.7% of Carpenter Technology Corporation shares are owned by institutional investors. Comparatively, 70.1% of L.B. Foster shares are owned by institutional investors. 4.5% of Carpenter Technology Corporation shares are owned by insiders. Comparatively, 15.2% of L.B. Foster shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Carpenter Technology Corporation has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, L.B. Foster has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500.
This table compares Carpenter Technology Corporation and L.B. Foster’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Carpenter Technology Corporation||4.06%||6.67%||2.77%|
This is a summary of recent ratings and recommmendations for Carpenter Technology Corporation and L.B. Foster, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Carpenter Technology Corporation||0||3||3||0||2.50|
Carpenter Technology Corporation currently has a consensus target price of $46.60, suggesting a potential upside of 0.00%. Given Carpenter Technology Corporation’s higher probable upside, analysts plainly believe Carpenter Technology Corporation is more favorable than L.B. Foster.
Carpenter Technology Corporation beats L.B. Foster on 11 of the 14 factors compared between the two stocks.
Carpenter Technology Corporation Company Profile
Carpenter Technology Corporation is engaged in the manufacturing, fabrication and distribution of specialty metals. The Company’s segments include Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). Its SAO segment consists of alloy and stainless steel manufacturing operations. Its PEP segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business and the Latrobe and Mexico distribution businesses. It develops, manufactures and distributes cast/wrought and powder metal stainless steels, and special alloys, including high temperature (iron-nickel-cobalt base), stainless, corrosion resistant, controlled expansion alloys, ultra-high strength and implantable alloys, tool and die steels and other specialty metals, as well as cast/wrought titanium alloys. The Company manufactures and rents down-hole drilling tools and components used in the oil and gas industry.
L.B. Foster Company Profile
L.B. Foster Company is a manufacturer, fabricator and distributor of products and services for the rail, construction, energy and utility markets. The Company’s segments include Rail Products and Services, Construction Products, and Tubular and Energy Services. Its Rail Products segment provides a range of new and used rail, trackwork and accessories to railroads, mines and industry. The Rail segment designs and produces concrete railroad ties, insulated rail joints, power rail, track fasteners, coverboards and special accessories for mass transit and other rail systems. The Construction Products segment sells and rents steel sheet piling, H-bearing pile and other piling products for foundation and earth retention requirements. The Tubular and Energy Services segment supplies pipe coatings for natural gas pipelines and utilities, blending, injection and metering equipment for the oil and gas market, and produces threaded pipe products for industrial water well and irrigation markets.
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