Reviewing China Resources Enterprise (OTCMKTS:CRHKY) and Griffon (NYSE:GFF)

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

Dividends

China Resources Enterprise pays an annual dividend of $0.22 per share and has a dividend yield of 3.0%. Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. 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.

Earnings & Valuation

This table compares China Resources Enterprise and Griffon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Resources Enterprise	$5.37 billion	2.20	$659.20 million	N/A	N/A
Griffon	$2.52 billion	1.36	$51.11 million	$1.00	74.05

China Resources Enterprise has higher revenue and earnings than Griffon.

Insider & Institutional Ownership

73.2% of Griffon shares are owned by institutional investors. 10.2% of Griffon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

China Resources Enterprise has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Griffon has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares China Resources Enterprise and Griffon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Resources Enterprise	N/A	N/A	N/A
Griffon	2.03%	181.66%	11.95%

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Resources Enterprise and Griffon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Enterprise	0	0	0	0	0.00
Griffon	0	2	3	2	3.00

Griffon has a consensus price target of $95.60, suggesting a potential upside of 29.10%. Given Griffon’s stronger consensus rating and higher probable upside, analysts plainly believe Griffon is more favorable than China Resources Enterprise.

Summary

Griffon beats China Resources Enterprise on 11 of the 16 factors compared between the two stocks.

About China Resources Enterprise

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, distributes, and sells beer products in Mainland China. The company offers its products under the Nong Li, Snow, and Jinsha brands. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015. The company was incorporated in 1965 and is based in Wan Chai, Hong Kong. China Resources Beer (Holdings) Company Limited operates as a subsidiary of CRH (Beer) Limited.

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.