Head-To-Head Survey: Griffon (NYSE:GFF) vs. Shanghai Industrial (OTCMKTS:SGHIY)

Griffon (NYSE:GFF) and Shanghai Industrial (OTCMKTS:SGHIY) are both multi-sector conglomerates companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.62 billion	1.29	$209.90 million	$4.83	14.90
Shanghai Industrial	$3.71 billion	0.43	$359.94 million	N/A	N/A

Shanghai Industrial has higher revenue and earnings than Griffon.

Profitability

This table compares Griffon and Shanghai Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Griffon	9.06%	114.46%	10.83%
Shanghai Industrial	N/A	N/A	N/A

Dividends

Griffon pays an annual dividend of $0.72 per share and has a dividend yield of 1.0%. Shanghai Industrial pays an annual dividend of $1.28 per share and has a dividend yield of 8.6%. Griffon pays out 14.9% of its earnings in the form of a dividend. Griffon has raised its dividend for 1 consecutive years.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	0	3	2	3.40
Shanghai Industrial	0	0	0	0	0.00

Griffon presently has a consensus target price of $98.20, indicating a potential upside of 36.50%. Given Griffon’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Griffon is more favorable than Shanghai Industrial.

Volatility & Risk

Griffon has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Shanghai Industrial has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

Institutional and Insider Ownership

73.2% of Griffon shares are owned by institutional investors. 10.2% of Griffon shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Griffon beats Shanghai Industrial on 12 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 Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.