Construction Partners (NASDAQ:ROAD) versus Aspen Aerogels (NYSE:ASPN) Head to Head Contrast

Aspen Aerogels (NYSE:ASPN) and Construction Partners (NASDAQ:ROAD) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares Aspen Aerogels and Construction Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-78.53%	2.92%	1.85%
Construction Partners	3.04%	12.24%	3.81%

Risk and Volatility

Aspen Aerogels has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500. Comparatively, Construction Partners has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Aspen Aerogels and Construction Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	1	2	6	1	2.70
Construction Partners	0	1	1	2	3.25

Aspen Aerogels currently has a consensus price target of $19.50, indicating a potential upside of 168.97%. Construction Partners has a consensus price target of $112.3333, indicating a potential upside of 4.43%. Given Aspen Aerogels’ higher probable upside, equities analysts clearly believe Aspen Aerogels is more favorable than Construction Partners.

Valuation & Earnings

This table compares Aspen Aerogels and Construction Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$397.18 million	1.50	$13.38 million	($3.81)	-1.90
Construction Partners	$1.82 billion	3.30	$68.93 million	$1.37	78.52

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

Institutional & Insider Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. Comparatively, 94.8% of Construction Partners shares are owned by institutional investors. 4.3% of Aspen Aerogels shares are owned by company insiders. Comparatively, 16.4% of Construction Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Construction Partners beats Aspen Aerogels on 11 of the 15 factors compared between the two stocks.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

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.