Contrasting Grupo Mexico (OTCMKTS:GMBXF) & Griffon (NYSE:GFF)

Griffon (NYSE:GFF) and Grupo Mexico (OTCMKTS:GMBXF) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Griffon and Grupo Mexico, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	2	3	3	3.13
Grupo Mexico	0	4	1	0	2.20

Griffon presently has a consensus price target of $101.80, suggesting a potential upside of 8.46%. Given Griffon’s stronger consensus rating and higher possible upside, analysts plainly believe Griffon is more favorable than Grupo Mexico.

Insider and Institutional Ownership

73.2% of Griffon shares are held by institutional investors. 10.2% of Griffon shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Griffon and Grupo Mexico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	1.76%	228.83%	12.35%
Grupo Mexico	N/A	N/A	N/A

Valuation & Earnings

This table compares Griffon and Grupo Mexico”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.54 billion	1.72	$51.11 million	$0.92	102.02
Grupo Mexico	N/A	N/A	N/A	N/A	N/A

Griffon has higher revenue and earnings than Grupo Mexico.

Risk & Volatility

Griffon has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Grupo Mexico has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Summary

Griffon beats Grupo Mexico on 11 of the 11 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 Grupo Mexico

Grupo México, S.A.B. de C.V. engages in copper production, cargo transportation, and infrastructure businesses worldwide. The company operates through Mining, Transportation, and Infrastructure divisions. The Mining division explores for copper, silver, molybdenum, zinc, sulfuric acid, gold, and selenium. It owns interests in 14 underground and open pit mines, and 8 exploration projects in Mexico, Peru, the United States, Argentina, Chile, Ecuador, and Spain. The Transportation division offers railroad transportation services, including general and intermodal freight services by railroad; passenger transportation services; and auxiliary terminal management and intra-terminal hauling services. This division provides railroad services for the agriculture, automotive, cement, energy, intermodal, metals and minerals, industrial products, and chemical and fertilizer sectors. It operates a railroad network of 11,137 km across 24 states in Mexico. The Infrastructure division offers land and ocean drilling services; and engineering services. It also generates energy through a combined cycle plant and wind farm; and constructs, operates, and maintains Salamanca-León highway and Silao Bypas. Grupo México, S.A.B. de C.V. was founded in 1890 and is based in Mexico City, Mexico.