Griffon (NYSE:GFF – Get Free Report) and IAC (NASDAQ:IAC – Get Free Report) are both mid-cap multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Earnings & Valuation
This table compares Griffon and IAC”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Griffon | $2.52 billion | 1.41 | $51.11 million | $1.00 | 76.73 |
| IAC | $3.81 billion | 0.75 | -$539.90 million | ($2.73) | -14.67 |
Profitability
This table compares Griffon and IAC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Griffon | 2.03% | 181.66% | 11.95% |
| IAC | -8.27% | -4.61% | -3.06% |
Institutional and Insider Ownership
73.2% of Griffon shares are held by institutional investors. Comparatively, 88.9% of IAC shares are held by institutional investors. 10.2% of Griffon shares are held by company insiders. Comparatively, 16.1% of IAC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Griffon has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, IAC has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Griffon and IAC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Griffon | 1 | 1 | 3 | 3 | 3.00 |
| IAC | 1 | 3 | 10 | 0 | 2.64 |
Griffon currently has a consensus target price of $95.60, suggesting a potential upside of 24.59%. IAC has a consensus target price of $46.67, suggesting a potential upside of 16.49%. Given Griffon’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Griffon is more favorable than IAC.
Summary
Griffon beats IAC on 11 of the 15 factors compared between the two stocks.
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.
About IAC
IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.
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