Critical Comparison: Shanghai Industrial (OTCMKTS:SGHIY) versus Carlisle Companies (NYSE:CSL)

Shanghai Industrial (OTCMKTS:SGHIY) and Carlisle Companies (NYSE:CSL) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

89.5% of Carlisle Companies shares are owned by institutional investors. 1.4% of Carlisle Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Shanghai Industrial and Carlisle Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shanghai Industrial	0	0	0	0	0.00
Carlisle Companies	1	5	4	0	2.30

Carlisle Companies has a consensus target price of $390.00, suggesting a potential upside of 15.10%. Given Carlisle Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Carlisle Companies is more favorable than Shanghai Industrial.

Dividends

Shanghai Industrial pays an annual dividend of $1.04 per share and has a dividend yield of 7.3%. Carlisle Companies pays an annual dividend of $4.40 per share and has a dividend yield of 1.3%. Carlisle Companies pays out 24.6% of its earnings in the form of a dividend. Carlisle Companies has raised its dividend for 48 consecutive years.

Profitability

This table compares Shanghai Industrial and Carlisle Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shanghai Industrial	N/A	N/A	N/A
Carlisle Companies	16.12%	38.16%	15.60%

Earnings and Valuation

This table compares Shanghai Industrial and Carlisle Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shanghai Industrial	$3.71 billion	0.42	$359.94 million	N/A	N/A
Carlisle Companies	$5.00 billion	2.89	$1.31 billion	$17.90	18.93

Carlisle Companies has higher revenue and earnings than Shanghai Industrial.

Risk and Volatility

Shanghai Industrial has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Summary

Carlisle Companies beats Shanghai Industrial on 13 of the 15 factors compared between the two stocks.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.