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

Analyst Recommendations

This is a summary of current recommendations and price targets for Simpson Manufacturing and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simpson Manufacturing 0 0 0 0 N/A
Simpson Manufacturing Competitors 99 544 835 23 2.52

As a group, “Construction Supplies & Fixtures” companies have a potential upside of 14.03%. Given Simpson Manufacturing’s competitors higher probable upside, analysts clearly believe Simpson Manufacturing has less favorable growth aspects than its competitors.

Dividends

Simpson Manufacturing pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. 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 1.5% and pay out 31.9% of their earnings in the form of a dividend. Simpson Manufacturing has increased its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Simpson Manufacturing and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Simpson Manufacturing $914.03 million $171.24 million 23.92
Simpson Manufacturing Competitors $2.53 billion $321.97 million 29.18

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

Insider and Institutional Ownership

83.6% of Simpson Manufacturing shares are owned by institutional investors. Comparatively, 83.8% of shares of all “Construction Supplies & Fixtures” companies are owned by institutional investors. 0.4% of Simpson Manufacturing shares are owned by company insiders. Comparatively, 8.5% of shares of all “Construction Supplies & Fixtures” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Simpson Manufacturing and its competitors’ 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 -23.79% 870.68% 5.91%

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 competitors have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.

Summary

Simpson Manufacturing competitors beat Simpson Manufacturing on 8 of the 12 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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