Comparing James Hardie Industries (NYSE:JHX) and Construction Partners (NASDAQ:ROAD)

James Hardie Industries (NYSE:JHX) and Construction Partners (NASDAQ:ROAD) are both mid-cap construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Valuation & Earnings

This table compares James Hardie Industries and Construction Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
James Hardie Industries	$3.88 billion	2.36	$424.00 million	$0.77	27.69
Construction Partners	$1.82 billion	3.78	$68.93 million	$1.37	89.77

James Hardie Industries has higher revenue and earnings than Construction Partners. James Hardie Industries is trading at a lower price-to-earnings ratio than Construction Partners, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

James Hardie Industries has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Construction Partners has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for James Hardie Industries and Construction Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
James Hardie Industries	0	1	9	1	3.00
Construction Partners	0	2	1	3	3.17

James Hardie Industries presently has a consensus target price of $32.39, suggesting a potential upside of 51.94%. Construction Partners has a consensus target price of $112.33, suggesting a potential downside of 8.66%. Given James Hardie Industries’ higher probable upside, analysts plainly believe James Hardie Industries is more favorable than Construction Partners.

Profitability

This table compares James Hardie Industries and Construction Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
James Hardie Industries	8.75%	27.95%	10.84%
Construction Partners	3.04%	12.24%	3.81%

Institutional and Insider Ownership

8.0% of James Hardie Industries shares are owned by institutional investors. Comparatively, 94.8% of Construction Partners shares are owned by institutional investors. 16.4% of Construction Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

James Hardie Industries beats Construction Partners on 8 of the 15 factors compared between the two stocks.

About James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

About Construction Partners

Construction Partners, Inc., a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments. It also engages in manufacturing and distributing hot mix asphalt (HMA) for internal use and sales to third parties in connection with construction projects; and paving activities, including the construction of roadway base layers and application of asphalt pavement. In addition, the company is involved in site development, including the installation of utility and drainage systems; mining aggregates, such as sand, gravel, and construction stones that are used as raw materials in the production of HMA; and distributing liquid asphalt cement for internal use and sales to third parties in connection with HMA production. The company was formerly known as SunTx CPI Growth Company, Inc. and changed its name to Construction Partners, Inc. in September 2017. Construction Partners, Inc. was founded in 2007 and is headquartered in Dothan, Alabama.