Simpson Manufacturing (NYSE:SSD – Get Free Report) and Rectitude (NASDAQ:RECT – Get Free Report) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Profitability
This table compares Simpson Manufacturing and Rectitude’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Simpson Manufacturing | 14.51% | 18.29% | 11.59% |
Rectitude | N/A | N/A | N/A |
Earnings & Valuation
This table compares Simpson Manufacturing and Rectitude”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Simpson Manufacturing | $2.22 billion | 3.20 | $353.99 million | $7.57 | 22.22 |
Rectitude | $41.35 million | 2.19 | $2.49 million | N/A | N/A |
Insider and Institutional Ownership
93.7% of Simpson Manufacturing shares are held by institutional investors. 0.4% of Simpson Manufacturing shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for Simpson Manufacturing and Rectitude, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Simpson Manufacturing | 0 | 0 | 1 | 0 | 3.00 |
Rectitude | 0 | 0 | 0 | 0 | 0.00 |
Simpson Manufacturing currently has a consensus price target of $218.00, suggesting a potential upside of 29.59%. Given Simpson Manufacturing’s stronger consensus rating and higher probable upside, research analysts plainly believe Simpson Manufacturing is more favorable than Rectitude.
Summary
Simpson Manufacturing beats Rectitude on 11 of the 11 factors compared between the two stocks.
About Simpson Manufacturing
Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, infrastructure construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Italy, Romania, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.
About Rectitude
Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.
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