PGT Innovations (NYSE:PGTI) and Griffon (NYSE:GFF) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Griffon pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. PGT Innovations does not pay a dividend. Griffon pays out 32.2% of its earnings in the form of a dividend. Griffon has increased its dividend for 7 consecutive years.
78.9% of PGT Innovations shares are owned by institutional investors. Comparatively, 64.4% of Griffon shares are owned by institutional investors. 5.8% of PGT Innovations shares are owned by insiders. Comparatively, 26.4% of Griffon shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
PGT Innovations has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Griffon has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
Earnings & Valuation
This table compares PGT Innovations and Griffon’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PGT Innovations||$511.08 million||2.47||$39.83 million||$0.61||35.70|
|Griffon||$1.53 billion||0.43||$14.91 million||$0.87||16.61|
PGT Innovations has higher earnings, but lower revenue than Griffon. Griffon is trading at a lower price-to-earnings ratio than PGT Innovations, indicating that it is currently the more affordable of the two stocks.
This table compares PGT Innovations and Griffon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for PGT Innovations and Griffon, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PGT Innovations currently has a consensus target price of $22.88, indicating a potential upside of 5.03%. Griffon has a consensus target price of $18.00, indicating a potential upside of 24.57%. Given Griffon’s higher probable upside, analysts clearly believe Griffon is more favorable than PGT Innovations.
PGT Innovations beats Griffon on 10 of the 17 factors compared between the two stocks.
About PGT Innovations
PGT Innovations, Inc. manufactures and supplies residential impact-resistant windows and doors in the Southeastern United States, the Gulf Coast, Coastal mid-Atlantic, the Caribbean, Central America, and Canada. The company offers heavy-duty aluminum or vinyl frames with laminated glass to provide protection from hurricane-force winds and wind-borne debris; and non-impact vinyl windows with insulating glass and multi-chambered frames for various climate zones. It also provides customizable non-impact-resistant aluminum frame windows and doors; and non-glass vertical and horizontal sliding panels for porch enclosures, including vinyl-glazed aluminum-framed products used for enclosing screened-in porches that provide protection from inclement weather, as well as cabana doors. In addition, the company offers premium aluminum impact-resistant products; aluminum impact-resistant windows and doors; vinyl energy-efficient impact-resistant windows; and commercial storefront window system and entry doors. Further, it provides high-end luxury aluminum doors and windows, such as impact and non-impact sliding glass doors and terrace doors, fixed picture windows, single hung windows, and horizontal rolling windows; and various aluminum thermally broken doors and windows. The company offers its products primarily under the PGT, CGI, and WinDoor brands, as well as WinGuard, WinGuard Vinyl, EnergyVue, Eze-Breeze, Estate Collection, Sentinel, Estate Entrances, Commercial Series, and Targa names. It serves residential new construction, and home repair and remodeling end markets through window and building supply distributors, window replacement dealers, and enclosure contractors. The company was formerly known as PGT, Inc. and changed its name to PGT Innovations, Inc. in December 2016. PGT Innovations, Inc. was founded in 1980 and is headquartered in North Venice, Florida.
Griffon Corporation, through its wholly-owned subsidiaries, engages in home and building, telephonics, and plastic products businesses worldwide. Its Home & Building Products segment manufactures and markets long-handled tools and landscaping products for homeowners and professionals; and residential and commercial garage doors to professional dealers and home center retail chains. The company's Telephonics segment designs, develops, manufactures, and provides logistical support and lifecycle sustainment services; and intelligence, surveillance, and communications solutions to defense, aerospace, and commercial customers. The company was founded in 1959 and is headquartered in New York, New York.
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