Head to Head Review: Tecnoglass (NYSE:TGLS) versus Worthington Enterprises (NYSE:WOR)

Worthington Enterprises (NYSE:WOR) and Tecnoglass (NYSE:TGLS) are both mid-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a summary of current recommendations for Worthington Enterprises and Tecnoglass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Enterprises	0	1	1	0	2.50
Tecnoglass	0	2	3	0	2.60

Worthington Enterprises presently has a consensus price target of $75.00, indicating a potential upside of 24.46%. Tecnoglass has a consensus price target of $63.33, indicating a potential upside of 39.30%. Given Tecnoglass’ stronger consensus rating and higher probable upside, analysts clearly believe Tecnoglass is more favorable than Worthington Enterprises.

Dividends

Worthington Enterprises pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Tecnoglass pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Worthington Enterprises pays out 24.2% of its earnings in the form of a dividend. Tecnoglass pays out 25.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tecnoglass has raised its dividend for 4 consecutive years. Worthington Enterprises is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Worthington Enterprises and Tecnoglass”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Enterprises	$1.38 billion	2.15	$156.09 million	$3.31	18.20
Tecnoglass	$983.61 million	2.05	$159.57 million	$2.34	19.43

Tecnoglass has lower revenue, but higher earnings than Worthington Enterprises. Worthington Enterprises is trading at a lower price-to-earnings ratio than Tecnoglass, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Worthington Enterprises and Tecnoglass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Enterprises	11.50%	16.71%	9.29%
Tecnoglass	9.57%	15.35%	8.47%

Insider and Institutional Ownership

51.6% of Worthington Enterprises shares are held by institutional investors. Comparatively, 37.3% of Tecnoglass shares are held by institutional investors. 2.5% of Worthington Enterprises shares are held by insiders. Comparatively, 0.1% of Tecnoglass shares are held 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

Worthington Enterprises beats Tecnoglass on 10 of the 16 factors compared between the two stocks.

About Worthington Enterprises

Worthington Enterprises designs and manufactures products for building and construction, consumer markets, and sustainable energy applications. Its offerings include pressure cylinders used for propane, industrial gases, and other applications, as well as products for residential water systems and construction. The company’s consumer products include outdoor living and heating products, hand torches, and fuel cylinders. Its portfolio also includes equipment and components intended for applications such as compressed natural gas and hydrogen storage.

About Tecnoglass

Tecnoglass Inc. manufactures architectural glass, windows and aluminum products for residential and commercial construction. Its offerings include insulated and laminated glass, impact-resistant windows, curtain wall systems, storefronts and other building-envelope products. Founded in 1984, the company is based in Barranquilla, Colombia, where it operates manufacturing facilities. Tecnoglass serves customers in the United States, Colombia and other markets in the Americas, with the U.S. as a major market.