Head to Head Survey: Tecnoglass (NYSE:TGLS) and Worthington Enterprises (NYSE:WOR)

Worthington Enterprises (NYSE:WOR) and Tecnoglass (NYSE:TGLS) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Worthington Enterprises and Tecnoglass, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Enterprises	0	1	1	0	2.50
Tecnoglass	2	0	3	0	2.20

Worthington Enterprises presently has a consensus target price of $75.00, indicating a potential upside of 23.95%. Tecnoglass has a consensus target price of $63.33, indicating a potential upside of 82.78%. Given Tecnoglass’ higher possible upside, analysts plainly believe Tecnoglass is more favorable than Worthington Enterprises.

Dividends

Worthington Enterprises pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Tecnoglass pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Worthington Enterprises pays out 24.2% of its earnings in the form of a dividend. Tecnoglass pays out 21.1% 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. Tecnoglass has raised its dividend for 4 consecutive years. Tecnoglass is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Worthington Enterprises and Tecnoglass”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Enterprises	$1.38 billion	2.14	$156.09 million	$3.31	18.28
Tecnoglass	$983.61 million	1.56	$159.57 million	$2.84	12.20

Tecnoglass has lower revenue, but higher earnings than Worthington Enterprises. Tecnoglass 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 Tecnoglass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Enterprises	11.50%	16.71%	9.29%
Tecnoglass	12.35%	17.84%	10.14%

Insider and Institutional Ownership

51.6% of Worthington Enterprises shares are held by institutional investors. Comparatively, 37.3% of Tecnoglass shares are held by institutional investors. 2.5% of Worthington Enterprises shares are held by company insiders. Comparatively, 0.1% of Tecnoglass shares are held by company 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.

Summary

Tecnoglass beats Worthington Enterprises on 9 of the 16 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 Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.