Obayashi (OTCMKTS:OBYCF) vs. Grafton Group (OTCMKTS:GROUF) Head to Head Review

Grafton Group (OTCMKTS:GROUF) and Obayashi (OTCMKTS:OBYCF) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Grafton Group and Obayashi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grafton Group	N/A	N/A	N/A
Obayashi	7.06%	9.60%	3.90%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grafton Group	$2.92 billion	N/A	$155.92 million	N/A	N/A
Obayashi	$17.21 billion	1.11	$976.81 million	$1.72	15.70

Obayashi has higher revenue and earnings than Grafton Group.

Analyst Recommendations

This is a breakdown of current recommendations for Grafton Group and Obayashi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grafton Group	0	0	1	0	3.00
Obayashi	0	0	0	0	0.00

Risk & Volatility

Grafton Group has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Obayashi has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Insider & Institutional Ownership

8.2% of Grafton Group shares are held by institutional investors. 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.

Summary

Obayashi beats Grafton Group on 5 of the 9 factors compared between the two stocks.

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.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, river works, urban civil engineering structures, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in urban areas, as well as property management activities; solar, biomass, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company provides non-life insurance agency business. Further, it engages in the provision of urban redevelopment, contracted operations, and facility management services, as well as M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.