Head-To-Head Comparison: Janus International Group (NYSE:JBI) versus Simpson Manufacturing (NYSE:SSD)

Simpson Manufacturing (NYSE:SSD) and Janus International Group (NYSE:JBI) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Simpson Manufacturing and Janus International Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simpson Manufacturing	$2.31 billion	2.92	$322.22 million	$8.21	19.79
Janus International Group	$963.80 million	0.86	$70.40 million	$0.34	17.48

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

Institutional and Insider Ownership

93.7% of Simpson Manufacturing shares are owned by institutional investors. Comparatively, 88.8% of Janus International Group shares are owned by institutional investors. 0.4% of Simpson Manufacturing shares are owned by company insiders. Comparatively, 4.6% of Janus International Group shares are owned 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.

Profitability

This table compares Simpson Manufacturing and Janus International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simpson Manufacturing	14.90%	18.11%	11.90%
Janus International Group	5.29%	14.18%	5.89%

Volatility and Risk

Simpson Manufacturing has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Janus International Group has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Simpson Manufacturing and Janus International Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simpson Manufacturing	0	2	1	0	2.33
Janus International Group	0	3	1	0	2.25

Simpson Manufacturing presently has a consensus target price of $201.00, suggesting a potential upside of 23.68%. Janus International Group has a consensus target price of $10.17, suggesting a potential upside of 71.04%. Given Janus International Group’s higher possible upside, analysts clearly believe Janus International Group is more favorable than Simpson Manufacturing.

Summary

Simpson Manufacturing beats Janus International Group on 10 of the 13 factors compared between the two stocks.

About Simpson Manufacturing

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, infrastructure construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Italy, Romania, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.

About Janus International Group

Janus International Group, Inc. manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions. It also provides facility and door automation and access control technologies; and Noke smart entry system. The company was founded in 2002 and is headquartered in Temple, Georgia.