Contrasting Great Elm Group (NASDAQ:GEG) and Griffon (NYSE:GFF)

Great Elm Group (NASDAQ:GEG) and Griffon (NYSE:GFF) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Volatility & Risk

Great Elm Group has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Griffon has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Great Elm Group and Griffon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Great Elm Group	$16.32 million	4.26	$12.89 million	$0.32	7.50
Griffon	$2.62 billion	1.35	$209.90 million	$1.34	56.93

Griffon has higher revenue and earnings than Great Elm Group. Great Elm Group is trading at a lower price-to-earnings ratio than Griffon, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Great Elm Group and Griffon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Elm Group	0	0	1	0	3.00
Griffon	0	1	3	2	3.17

Griffon has a consensus target price of $98.20, suggesting a potential upside of 28.73%. Given Griffon’s stronger consensus rating and higher possible upside, analysts clearly believe Griffon is more favorable than Great Elm Group.

Profitability

This table compares Great Elm Group and Griffon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Elm Group	79.01%	-0.20%	-0.10%
Griffon	2.78%	144.21%	11.56%

Insider and Institutional Ownership

52.8% of Great Elm Group shares are held by institutional investors. Comparatively, 73.2% of Griffon shares are held by institutional investors. 51.8% of Great Elm Group shares are held by insiders. Comparatively, 10.2% of Griffon shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Griffon beats Great Elm Group on 12 of the 15 factors compared between the two stocks.

About Great Elm Group

Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.