Griffon (GFF) versus Its Peers Head-To-Head Comparison

Griffon (NYSE:GFF) is one of 93 public companies in the “Building Products” industry, but how does it weigh in compared to its rivals? We will compare Griffon to related companies based on the strength of its earnings, analyst recommendations, profitability, valuation, dividends, risk and institutional ownership.

Dividends

Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 0.8%. Griffon pays out 22.4% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 7.0% and pay out 37.6% of their earnings in the form of a dividend. Griffon has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares Griffon and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Griffon	$2.52 billion	$51.11 million	26.83
Griffon Competitors	$4.00 billion	$4.65 billion	38.86

Griffon’s rivals have higher revenue and earnings than Griffon. Griffon is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

73.2% of Griffon shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are owned by institutional investors. 10.2% of Griffon shares are owned by company insiders. Comparatively, 10.2% of shares of all “Building Products” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Griffon and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	1	2	1	3.00
Griffon Competitors	745	3944	5080	241	2.48

Griffon presently has a consensus target price of $122.50, suggesting a potential upside of 16.47%. As a group, “Building Products” companies have a potential upside of 26.40%. Given Griffon’s rivals higher possible upside, analysts plainly believe Griffon has less favorable growth aspects than its rivals.

Profitability

This table compares Griffon and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	8.08%	249.31%	12.64%
Griffon Competitors	3.72%	-38.16%	5.06%

Volatility and Risk

Griffon has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Griffon’s rivals have a beta of 1.07, suggesting that their average share price is 7% more volatile than the S&P 500.

Summary

Griffon beats its rivals on 8 of the 15 factors compared.

About Griffon

Griffon Corporation is a diversified management and holding company whose businesses make products for homes, buildings, gardens and outdoor spaces. Its operations are organized into Home and Building Products and Consumer and Professional Products. The Home and Building Products segment includes Clopay, which makes residential and commercial garage doors, and CornellCookson, which produces rolling steel doors and security grilles. The Consumer and Professional Products segment sells lawn and garden tools, landscaping products and home organization products through brands including AMES, True Temper and ClosetMaid.