Bellway (OTCMKTS:BLWYY) & Caesarstone (NASDAQ:CSTE) Critical Analysis

Caesarstone (NASDAQ:CSTE) and Bellway (OTCMKTS:BLWYY) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Earnings and Valuation

This table compares Caesarstone and Bellway”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caesarstone	$397.23 million	0.13	-$137.47 million	($3.98)	-0.39
Bellway	$3.62 billion	1.00	$204.69 million	N/A	N/A

Bellway has higher revenue and earnings than Caesarstone.

Insider and Institutional Ownership

33.7% of Caesarstone shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Caesarstone has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, Bellway has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares Caesarstone and Bellway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesarstone	-34.60%	-24.33%	-10.79%
Bellway	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Caesarstone and Bellway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesarstone	1	0	0	0	1.00
Bellway	0	3	0	0	2.00

Summary

Bellway beats Caesarstone on 8 of the 9 factors compared between the two stocks.

About Caesarstone

Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway and Ashberry brands. Bellway p.l.c. was incorporated in 1978 and is headquartered in Newcastle upon Tyne, the United Kingdom.