Asahi Glass (OTCMKTS:ASGLY) & Apogee Enterprises (NASDAQ:APOG) Critical Contrast

Asahi Glass (OTCMKTS:ASGLY) and Apogee Enterprises (NASDAQ:APOG) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk and Volatility

Asahi Glass has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Dividends

Asahi Glass pays an annual dividend of $0.17 per share and has a dividend yield of 2.9%. Apogee Enterprises pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. Asahi Glass pays out -42.5% of its earnings in the form of a dividend. Apogee Enterprises pays out 26.8% 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. Apogee Enterprises has raised its dividend for 14 consecutive years. Asahi Glass is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations for Asahi Glass and Apogee Enterprises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asahi Glass	0	0	0	0	0.00
Apogee Enterprises	0	1	1	0	2.50

Apogee Enterprises has a consensus price target of $62.00, suggesting a potential upside of 59.26%. Given Apogee Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe Apogee Enterprises is more favorable than Asahi Glass.

Profitability

This table compares Asahi Glass and Apogee Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asahi Glass	-3.10%	-3.91%	-2.24%
Apogee Enterprises	6.25%	21.81%	10.46%

Insider & Institutional Ownership

94.1% of Apogee Enterprises shares are held by institutional investors. 2.0% of Apogee Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Asahi Glass and Apogee Enterprises”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asahi Glass	$13.68 billion	0.46	-$620.68 million	($0.40)	-14.45
Apogee Enterprises	$1.36 billion	0.62	$85.05 million	$3.88	10.03

Apogee Enterprises has lower revenue, but higher earnings than Asahi Glass. Asahi Glass is trading at a lower price-to-earnings ratio than Apogee Enterprises, indicating that it is currently the more affordable of the two stocks.

Summary

Apogee Enterprises beats Asahi Glass on 14 of the 17 factors compared between the two stocks.

About Asahi Glass

AGC Inc. manufactures and sells glass, automotive, electronics, chemicals, and ceramics worldwide. The company offers architectural glass products, including laminated, insulating, wired, solar control, toughened, decorative, sound insulation, float and patterned, and industrial glasses; structural glazing systems; and automotive glass, such as laminated, tempered, and privacy glasses, as well as integrated glass antennas and module assembly windows. It also provides glass substrates for thin-film-transistor liquid crystal displays and OLEDs; synthetic fused silica glass, synthetic quartz crystals, silicon carbides, CMP slurry, through glass Vias, high refractive index glass, diffusers, glass ceramics substrates, optical planar devices, IR cut filters, aspherical glass and molded lens, and micro lens array products; polycarbonate and optical sheets, thin sheets, and films; and glass frits and pastes, as well as glass substrates for semiconductor packaging and other electronic materials. In addition, the company offers cover glass for smartphones and tablet devices; glass substrates for photovoltaic devices and touch panels; specialty glass; extra clear float glass; transparent conductive oxide glass for a-Si type solar module; and ultra-thin glass for electronics devices. Further, it provides chlor-alkali, polyurethanes, fluoro, and specialty chemical products; high thermal insulation ceramics wall for furnaces; and ceramic beads, sputtering targets, abrasion resistant ceramics, alumina cement, engineering fine ceramics, and ceramics molding agents for 3D printers. Additionally, the company engages in the digital signage on glass, copper clad laminate, and plastic optical fiber businesses; and gas and solvents, and life Science businesses. The company was formerly known as Asahi Glass Co., Ltd. and changed its name to AGC Inc. in July 2018. AGC Inc. was founded in 1907 and is headquartered in Tokyo, Japan.

About Apogee Enterprises

Apogee Enterprises, Inc. provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, finishes, and installs custom glass and aluminum window, curtainwall, storefront, and entrance systems for the exterior of buildings primarily in the non-residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. The company’s products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; institutional buildings comprising education facilities, health care facilities, and government buildings; transportation facilities, such as airports and transit terminals, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, distributors, and glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.