Critical Contrast: Griffon (NYSE:GFF) and NWPX Infrastructure (NASDAQ:NWPX)

by · The Markets Daily

NWPX Infrastructure (NASDAQ:NWPXGet Free Report) and Griffon (NYSE:GFFGet Free Report) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

This table compares NWPX Infrastructure and Griffon’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
NWPX Infrastructure8.49%12.22%7.93%
Griffon8.08%249.31%12.64%

Earnings & Valuation

This table compares NWPX Infrastructure and Griffon”s top-line revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
NWPX Infrastructure$574.44 million1.80$35.41 million$4.9921.44
Griffon$2.56 billion1.73$51.11 million$3.9224.94

Griffon has higher revenue and earnings than NWPX Infrastructure. NWPX Infrastructure is trading at a lower price-to-earnings ratio than Griffon, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NWPX Infrastructure has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Griffon has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for NWPX Infrastructure and Griffon, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
NWPX Infrastructure02212.80
Griffon01123.25

NWPX Infrastructure presently has a consensus target price of $110.00, suggesting a potential upside of 2.80%. Griffon has a consensus target price of $122.50, suggesting a potential upside of 25.29%. Given Griffon’s stronger consensus rating and higher probable upside, analysts clearly believe Griffon is more favorable than NWPX Infrastructure.

Institutional and Insider Ownership

80.6% of NWPX Infrastructure shares are held by institutional investors. Comparatively, 73.2% of Griffon shares are held by institutional investors. 3.3% of NWPX Infrastructure shares are held by company insiders. Comparatively, 10.2% of Griffon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Griffon beats NWPX Infrastructure on 10 of the 15 factors compared between the two stocks.

About NWPX Infrastructure

(Get Free Report)

Northwest Pipe Company, together with its subsidiaries, engages in the manufacture and supply of water-related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment provides stormwater and wastewater technology products, precast, and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults and catch basins, pump lift stations, oil water separators, biofiltration units, steel casing pipes, and bar-wrapped concrete cylinder pipes, as well as pipeline system joints, fittings, specialized components, and other environmental and engineered solutions. The company sells its water infrastructure products under ParkUSA, Geneva Pipe and Precast, Permalok, and Northwest Pipe Company brands primarily to installation contractors. Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.

About Griffon

(Get Free Report)

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.