Rockwool A/S (OTCMKTS:RKWBF) & Tecnoglass (NYSE:TGLS) Head to Head Analysis

Rockwool A/S (OTCMKTS:RKWBF) and Tecnoglass (NYSE:TGLS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

This table compares Rockwool A/S and Tecnoglass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwool A/S	N/A	N/A	N/A
Tecnoglass	12.35%	17.84%	10.14%

Valuation and Earnings

This table compares Rockwool A/S and Tecnoglass”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwool A/S	N/A	N/A	N/A	$5.65	5.93
Tecnoglass	$983.61 million	1.82	$159.57 million	$2.84	14.18

Tecnoglass has higher revenue and earnings than Rockwool A/S. Rockwool A/S is trading at a lower price-to-earnings ratio than Tecnoglass, indicating that it is currently the more affordable of the two stocks.

Dividends

Rockwool A/S pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Tecnoglass pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Rockwool A/S pays out 17.8% of its earnings in the form of a dividend. Tecnoglass pays out 21.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tecnoglass has raised its dividend for 4 consecutive years. Rockwool A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Rockwool A/S and Tecnoglass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwool A/S	0	0	0	0	0.00
Tecnoglass	0	2	3	0	2.60

Tecnoglass has a consensus target price of $63.33, suggesting a potential upside of 57.29%. Given Tecnoglass’ stronger consensus rating and higher probable upside, analysts clearly believe Tecnoglass is more favorable than Rockwool A/S.

Institutional and Insider Ownership

7.4% of Rockwool A/S shares are owned by institutional investors. Comparatively, 37.3% of Tecnoglass shares are owned by institutional investors. 0.1% of Tecnoglass shares are owned by insiders. 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.

Summary

Tecnoglass beats Rockwool A/S on 11 of the 14 factors compared between the two stocks.

About Rockwool A/S

Rockwool A/S produces and sells stone wool insulation products in Western Europe, Eastern Europe, North America, Asia, and internationally. The company operates through two segments, Insulation and Systems segments. It offers fire-safe stone wool insulation under the ROCKWOOL brand name; acoustic solutions for ceilings and walls under the Rockfon brand name; board materials that are applied in ventilated constructions for facade cladding, soffits, roof detailing, and fascia under the Rockpanel brand name; and rootzone management solutions for controlled environment agriculture under the Grodan brand name. The company also provides stone wool-based products used in the areas of rainwater management and prefab building systems, railway vibration control, automotive, and industrial OEM applications under the ROCKWOOL, Rockdelta, and Lapinus brand names. Rockwool A/S was founded in 1909 and is based in Hedehusene, Denmark.

About Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.