Grafton Group (OTCMKTS:GROUF) versus Simpson Manufacturing (NYSE:SSD) Head-To-Head Review

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

Institutional and Insider Ownership

93.7% of Simpson Manufacturing shares are owned by institutional investors. Comparatively, 8.2% of Grafton Group shares are owned by institutional investors. 0.4% of Simpson Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Simpson Manufacturing and Grafton Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simpson Manufacturing	0	2	1	0	2.33
Grafton Group	0	0	1	0	3.00

Simpson Manufacturing currently has a consensus price target of $201.00, suggesting a potential upside of 20.09%. Given Simpson Manufacturing’s higher possible upside, equities analysts clearly believe Simpson Manufacturing is more favorable than Grafton Group.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simpson Manufacturing	$2.31 billion	3.00	$322.22 million	$8.21	20.39
Grafton Group	$2.92 billion	0.81	$155.92 million	N/A	N/A

Simpson Manufacturing has higher earnings, but lower revenue than Grafton Group.

Profitability

This table compares Simpson Manufacturing and Grafton 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%
Grafton Group	N/A	N/A	N/A

Volatility and Risk

Simpson Manufacturing has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Summary

Simpson Manufacturing beats Grafton Group on 9 of the 11 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 Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands. The company’s Retailing segment retails home and garden products through stores, including DIY products, paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products under the Woodie’s brand. Its Manufacturing segment manufactures dry mortars and wooden staircases; and drainage, ducting and roofline systems under the CPI Mortar, StairBox, and MFP brand names. Grafton Group plc was founded in 1902 and is based in Dublin, Ireland.