Worthington Enterprises (NYSE:WOR) and Rockwool A/S (OTCMKTS:RKWBF) Critical Contrast

Worthington Enterprises (NYSE:WOR) and Rockwool A/S (OTCMKTS:RKWBF) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Insider & Institutional Ownership

51.6% of Worthington Enterprises shares are owned by institutional investors. Comparatively, 7.4% of Rockwool A/S shares are owned by institutional investors. 2.5% of Worthington Enterprises shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Worthington Enterprises and Rockwool A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Enterprises	$1.38 billion	2.01	$156.09 million	$3.14	18.11
Rockwool A/S	N/A	N/A	N/A	$5.65	5.21

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

Profitability

This table compares Worthington Enterprises and Rockwool A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Enterprises	11.30%	16.79%	9.27%
Rockwool A/S	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Worthington Enterprises and Rockwool A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Enterprises	0	2	2	0	2.50
Rockwool A/S	0	0	0	0	0.00

Worthington Enterprises currently has a consensus price target of $65.50, indicating a potential upside of 15.20%. Given Worthington Enterprises’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Worthington Enterprises is more favorable than Rockwool A/S.

Dividends

Worthington Enterprises pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Rockwool A/S pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Worthington Enterprises pays out 25.5% of its earnings in the form of a dividend. Rockwool A/S pays out 17.8% 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. Rockwool A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Worthington Enterprises beats Rockwool A/S on 10 of the 13 factors compared between the two stocks.

About Worthington Enterprises

Worthington Enterprises, Inc. operates as an industrial manufacturing company. It operates through three segments: Building Products, Consumer Products, and Sustainable Energy Solutions. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, fire suppression tanks, chemical tanks, and foam and adhesive tanks for gas producers, and distributors. The Consumer Products segment provides products in the tools, outdoor living, and celebrations end markets. Its products include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, and drywall tools and accessories This segment sells its products primarily to mass merchandisers, retailers, and distributors under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brands. The Sustainable Energy Solutions segment sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport, and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks. The company was formerly known as Worthington Industries, Inc. Worthington Enterprises, Inc. was founded in 1955 and is headquartered in Columbus, Ohio.

About Rockwool A/S

Rockwool A/S produces and sells stone wool insulation products in Western Europe, Eastern Europe, North America, Asia, and internationally. The company operates through two segments, Insulation and Systems segments. It offers fire-safe stone wool insulation under the ROCKWOOL brand name; acoustic solutions for ceilings and walls under the Rockfon brand name; board materials that are applied in ventilated constructions for facade cladding, soffits, roof detailing, and fascia under the Rockpanel brand name; and rootzone management solutions for controlled environment agriculture under the Grodan brand name. The company also provides stone wool-based products used in the areas of rainwater management and prefab building systems, railway vibration control, automotive, and industrial OEM applications under the ROCKWOOL, Rockdelta, and Lapinus brand names. Rockwool A/S was founded in 1909 and is based in Hedehusene, Denmark.