Analyzing Griffon (NYSE:GFF) and Scully Royalty (NYSE:SRL)

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

Institutional & Insider Ownership

73.2% of Griffon shares are owned by institutional investors. Comparatively, 42.0% of Scully Royalty shares are owned by institutional investors. 10.2% of Griffon shares are owned by company insiders. Comparatively, 1.9% of Scully Royalty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Griffon and Scully Royalty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	2	3	2	3.00
Scully Royalty	1	0	0	0	1.00

Griffon presently has a consensus target price of $95.60, suggesting a potential upside of 26.99%. Given Griffon’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Griffon is more favorable than Scully Royalty.

Volatility & Risk

Griffon has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Scully Royalty has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Griffon and Scully Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	2.78%	144.21%	11.56%
Scully Royalty	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.52 billion	1.38	$209.90 million	$1.00	75.28
Scully Royalty	$35.30 million	2.42	-$15.02 million	N/A	N/A

Griffon has higher revenue and earnings than Scully Royalty.

Dividends

Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Scully Royalty pays an annual dividend of $0.26 per share and has a dividend yield of 4.5%. Griffon pays out 88.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Griffon has increased its dividend for 1 consecutive years and Scully Royalty has increased its dividend for 1 consecutive years.

Summary

Griffon beats Scully Royalty on 12 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 Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.