Critical Comparison: Simpson Manufacturing (SSD) vs. Apogee Enterprises (APOG)
Simpson Manufacturing (NYSE: SSD) and Apogee Enterprises (NASDAQ:APOG) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
83.6% of Simpson Manufacturing shares are held by institutional investors. 0.4% of Simpson Manufacturing shares are held by insiders. Comparatively, 3.1% of Apogee Enterprises shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Simpson Manufacturing and Apogee Enterprises, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Apogee Enterprises has a consensus price target of $63.33, suggesting a potential upside of 31.42%. Given Apogee Enterprises’ higher probable upside, analysts clearly believe Apogee Enterprises is more favorable than Simpson Manufacturing.
Simpson Manufacturing pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. Apogee Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.2%. Simpson Manufacturing pays out 41.0% of its earnings in the form of a dividend. Apogee Enterprises pays out 20.4% 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. Apogee Enterprises has raised its dividend for 3 consecutive years.
Risk and Volatility
Simpson Manufacturing has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.
Valuation & Earnings
This table compares Simpson Manufacturing and Apogee Enterprises’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Simpson Manufacturing||$914.03 million||2.55||$171.24 million||$2.05||24.01|
|Apogee Enterprises||$1.20 billion||1.15||$159.52 million||$2.74||17.59|
Simpson Manufacturing has higher revenue, but lower earnings than Apogee Enterprises. Apogee Enterprises is trading at a lower price-to-earnings ratio than Simpson Manufacturing, indicating that it is currently the more affordable of the two stocks.
This table compares Simpson Manufacturing and Apogee Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Apogee Enterprises beats Simpson Manufacturing on 10 of the 16 factors compared between the two stocks.
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.
Apogee Enterprises Company Profile
Apogee Enterprises, Inc. is engaged in the design and development of glass solutions for enclosing commercial buildings and framing art. The Company operates through four segments: Architectural Glass, Architectural Services, Architectural Framing Systems and Large-Scale Optical Technologies (LSO). The Architectural Glass segment fabricates coated glass used in customized window and wall systems. The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings. The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems. The Large-Scale Optical Technologies segment manufactures glass and acrylic products for the custom picture framing and fine art markets.
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