Financial Analysis: Swire Pacific (OTCMKTS:SWRAY) vs. Griffon (NYSE:GFF)

Griffon (NYSE:GFF) and Swire Pacific (OTCMKTS:SWRAY) 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.

Insider and Institutional Ownership

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

Risk & Volatility

Griffon has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Swire Pacific has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Earnings and Valuation

This table compares Griffon and Swire Pacific”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.52 billion	1.42	$51.11 million	$1.00	77.46
Swire Pacific	$10.50 billion	2.81	$553.95 million	N/A	N/A

Swire Pacific has higher revenue and earnings than Griffon.

Dividends

Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Swire Pacific pays an annual dividend of $0.29 per share and has a dividend yield of 3.6%. 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 raised its dividend for 1 consecutive years.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	1	1	3	3	3.00
Swire Pacific	0	1	0	0	2.00

Griffon presently has a consensus price target of $95.60, suggesting a potential upside of 23.42%. Given Griffon’s stronger consensus rating and higher possible upside, analysts plainly believe Griffon is more favorable than Swire Pacific.

Profitability

This table compares Griffon and Swire Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	2.03%	181.66%	11.95%
Swire Pacific	N/A	N/A	N/A

Summary

Griffon beats Swire Pacific on 11 of the 16 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 Swire Pacific

Swire Pacific Limited engages in property, aviation, beverages, marine, and trading and industrial businesses in Hong Kong, Mainland China, rest of Asia, the United States, and internationally. The company's Property division develops, owns, and operates mixed-use properties. This division's property investment portfolio comprises office and retail premises, serviced apartments, and other luxury residential accommodations; and trading portfolio consists of residential properties. It also owns and manages hotels in Hong Kong and hotels in Mainland China, as well as owns interests in the Mandarin Oriental hotel in the United States. The company's Aviation division provides flight catering and ramp, passenger and cargo services, and aircraft maintenance and modification services. As of December 31, 2022, it had a fleet of 222 aircraft. Its Beverages division owns rights to manufacture, market, and distribute beverages to consumers. The company's Trading & Industrial division markets, retails, and distributes footwear, apparel, and accessories through its retail outlets; sells passenger cars, commercial vehicles, motorcycles, and scooters; operates a chain of bakery stores; packages and sells sugar products under the Taikoo Sugar brand; and offers waste management, business consultancy, and financial services. The company was founded in 1816 and is based in Central, Hong Kong. Swire Pacific Limited operates as a subsidiary of John Swire & Sons (H.K.) Limited