Owens Corning (NYSE:OC) and Beacon Roofing Supply (NASDAQ:BECN) are leading players in building materials supplies. And we think these two Fortune 500 companies are poised to achieve handsome growth over the long term, driven by the recently passed landmark infrastructure bill. But which stock is a better buy now? Read more to find out.Toledo, Ohio-based Owens Corning (NYSE:GLW) (OC) is a leading building and construction materials manufacturer and supplier that is operational in 33 countries. In comparison, Beacon Roofing Supply, Inc. (BECN) in Herndon, Va., is a roofing materials and complementary building products distributor in the United States and Canada. Both the companies are on the Fortune 500 list, with OC ranked #413 and BECN ranked #420.
The building materials industry is expected to benefit from the landmark $1.2 trillion infrastructure bill passed on November 15. Approximately $550 billion in the bill is dedicated to constructing and renovating public infrastructure in the United States, including roads, bridges, water, and energy systems. The infrastructure bill is hailed as a “once-in-a-lifetime” investment, with the goal of transforming the country’s existing infrastructure framework, which was recently rated C by the American Society of Civil Engineers. So, the demand for building materials is expected to accelerate over the next few years. Consequently, both OC and BECN should see impressive growth over the long term.
Shares of BECN have gained 42% in price over the past year, while OC has risen 20.6% over this period. In terms of year-to-date performance, BECN is the clear winner, with 34.5% gains versus OC’s 18.7% returns over this period. However, BECN has declined 9.5% over the past month, while OC retreated 2.4%.