Financial Survey: American Biltrite (OTCMKTS:ABLT) versus Simpson Manufacturing (NYSE:SSD)

American Biltrite (OTCMKTS:ABLT) and Simpson Manufacturing (NYSE:SSD) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for American Biltrite and Simpson Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Biltrite	0	0	0	0	0.00
Simpson Manufacturing	0	3	2	0	2.40

Simpson Manufacturing has a consensus target price of $214.75, suggesting a potential upside of 12.95%. Given Simpson Manufacturing’s stronger consensus rating and higher possible upside, analysts clearly believe Simpson Manufacturing is more favorable than American Biltrite.

Insider & Institutional Ownership

93.7% of Simpson Manufacturing shares are owned by institutional investors. 0.3% of Simpson Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

American Biltrite has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, Simpson Manufacturing has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Valuation & Earnings

This table compares American Biltrite and Simpson Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Biltrite	$188.74 million	0.01	-$2.64 million	($229.80)	-0.31
Simpson Manufacturing	$2.33 billion	3.36	$345.08 million	$8.53	22.29

Simpson Manufacturing has higher revenue and earnings than American Biltrite. American Biltrite is trading at a lower price-to-earnings ratio than Simpson Manufacturing, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Biltrite and Simpson Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Biltrite	-4.16%	-34.23%	-6.13%
Simpson Manufacturing	14.92%	17.72%	11.72%

Summary

Simpson Manufacturing beats American Biltrite on 14 of the 14 factors compared between the two stocks.

About American Biltrite

American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.

About Simpson Manufacturing

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, infrastructure construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Italy, Romania, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.