Shanghai Industrial (OTCMKTS:SGHIY – Get Free Report) and Griffon (NYSE:GFF – Get Free Report) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Profitability
This table compares Shanghai Industrial and Griffon’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Shanghai Industrial | N/A | N/A | N/A |
Griffon | 9.06% | 114.46% | 10.83% |
Dividends
Shanghai Industrial pays an annual dividend of $1.28 per share and has a dividend yield of 8.6%. Griffon pays an annual dividend of $0.72 per share and has a dividend yield of 0.9%. Griffon pays out 14.9% of its earnings in the form of a dividend. Griffon has raised its dividend for 1 consecutive years.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Shanghai Industrial | 0 | 0 | 0 | 0 | 0.00 |
Griffon | 0 | 0 | 3 | 2 | 3.40 |
Griffon has a consensus target price of $98.20, indicating a potential upside of 28.99%. Given Griffon’s stronger consensus rating and higher possible upside, analysts clearly believe Griffon is more favorable than Shanghai Industrial.
Risk & Volatility
Shanghai Industrial has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Griffon has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
73.2% of Griffon shares are held by institutional investors. 10.2% of Griffon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Shanghai Industrial and Griffon”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Shanghai Industrial | $3.71 billion | 0.43 | $359.94 million | N/A | N/A |
Griffon | $2.62 billion | 1.36 | $209.90 million | $4.83 | 15.76 |
Shanghai Industrial has higher revenue and earnings than Griffon.
Summary
Griffon beats Shanghai Industrial on 12 of the 16 factors compared between the two stocks.
About Shanghai Industrial
Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.
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.
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