Simpson Manufacturing (NYSE: SSD) is one of 25 public companies in the “Construction Supplies & Fixtures” industry, but how does it contrast to its peers? We will compare Simpson Manufacturing to similar companies based off the strength of its dividends, institutional ownership, profitability, analyst recommendations, risk, valuation and earnings.

Dividends

Simpson Manufacturing pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Simpson Manufacturing pays out 41.0% of its earnings in the form of a dividend. As a group, “Construction Supplies & Fixtures” companies pay a dividend yield of 1.6% and pay out 31.7% of their earnings in the form of a dividend. Simpson Manufacturing has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Simpson Manufacturing and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Simpson Manufacturing $914.03 million $171.24 million 22.49
Simpson Manufacturing Competitors $2.53 billion $322.23 million 27.02

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

Risk & Volatility

Simpson Manufacturing has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Simpson Manufacturing’s peers have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.

Profitability

This table compares Simpson Manufacturing and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Simpson Manufacturing 10.78% 10.26% 8.96%
Simpson Manufacturing Competitors -23.91% 870.33% 5.77%

Institutional and Insider Ownership

83.8% of Simpson Manufacturing shares are owned by institutional investors. Comparatively, 83.9% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 0.4% of Simpson Manufacturing shares are owned by insiders. Comparatively, 8.5% of shares of all “Construction Supplies & Fixtures” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Simpson Manufacturing and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simpson Manufacturing 0 1 0 0 2.00
Simpson Manufacturing Competitors 97 536 828 23 2.52

All “Construction Supplies & Fixtures” companies have a potential upside of 16.31%. Given Simpson Manufacturing’s peers stronger consensus rating and higher probable upside, analysts clearly believe Simpson Manufacturing has less favorable growth aspects than its peers.

Summary

Simpson Manufacturing peers beat Simpson Manufacturing on 11 of the 15 factors compared.

About Simpson Manufacturing

Simpson Manufacturing Co., Inc., through its subsidiary, Simpson Strong-Tie Company Inc. (SST), designs, engineers and manufactures wood construction products, including connectors, truss plates, fastening systems, fasteners and pre-fabricated lateral systems used in light-frame construction. The Company’s segments are North America, Europe, Asia/Pacific, and Administrative & All Other. The North America segment includes operations primarily in the United States and Canada. The Europe segment includes operations primarily in France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands and Belgium. The Asia/Pacific segment includes operations primarily in Australia, New Zealand, South Africa, China, Taiwan and Vietnam. The Company manufactures concrete construction products used for concrete, masonry, steel construction and for concrete repair, protection and strengthening, including adhesives, chemicals and mechanical anchors.

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