CRH (NYSE:CRH – Get Free Report) and Grafton Group (OTCMKTS:GROUF – Get Free Report) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Profitability
This table compares CRH and Grafton Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CRH | 10.02% | 15.98% | 6.78% |
| Grafton Group | N/A | N/A | N/A |
Earnings and Valuation
This table compares CRH and Grafton Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CRH | $37.45 billion | 2.11 | $3.73 billion | $5.52 | 21.37 |
| Grafton Group | $3.32 billion | 0.73 | $180.09 million | N/A | N/A |
CRH has higher revenue and earnings than Grafton Group.
Risk & Volatility
CRH has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.
Institutional and Insider Ownership
62.5% of CRH shares are held by institutional investors. Comparatively, 8.2% of Grafton Group shares are held by institutional investors. 0.1% of CRH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for CRH and Grafton Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CRH | 0 | 3 | 13 | 2 | 2.94 |
| Grafton Group | 0 | 0 | 1 | 0 | 3.00 |
CRH presently has a consensus target price of $139.54, suggesting a potential upside of 18.27%. Given CRH’s higher probable upside, research analysts clearly believe CRH is more favorable than Grafton Group.
Summary
CRH beats Grafton Group on 12 of the 13 factors compared between the two stocks.
About CRH
CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.
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.
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