Simpson Manufacturing (SSD) vs. its Peers Critical Review
Simpson Manufacturing (NYSE: SSD) is one of 25 publicly-traded companies in the “Construction Supplies & Fixtures” industry, but how does it compare to its peers? We will compare Simpson Manufacturing to similar companies based off the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
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 Competitors||-23.91%||870.33%||5.77%|
This is a summary of recent recommendations for Simpson Manufacturing and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simpson Manufacturing Competitors||97||536||828||23||2.52|
All “Construction Supplies & Fixtures” companies have a potential upside of 16.96%. Given Simpson Manufacturing’s peers higher probable upside, analysts clearly believe Simpson Manufacturing has less favorable growth aspects than its peers.
Risk and Volatility
Simpson Manufacturing has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Simpson Manufacturing’s peers have a beta of 1.40, meaning that their average stock price is 40% more volatile than the S&P 500.
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 raised its dividend for 3 consecutive years.
Institutional & 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, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Simpson Manufacturing and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Simpson Manufacturing||$914.03 million||$171.24 million||22.54|
|Simpson Manufacturing Competitors||$2.53 billion||$322.23 million||26.83|
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.
Simpson Manufacturing peers beat Simpson Manufacturing on 8 of the 12 factors compared.
Simpson Manufacturing Company Profile
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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