Compagnie de Saint-Gobain (OTCMKTS:CODYY) & Simpson Manufacturing (NYSE:SSD) Critical Analysis

Compagnie de Saint-Gobain (OTCMKTS:CODYY) and Simpson Manufacturing (NYSE:SSD) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Valuation and Earnings

This table compares Compagnie de Saint-Gobain and Simpson Manufacturing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compagnie de Saint-Gobain	$50.40 billion	1.10	$3.08 billion	N/A	N/A
Simpson Manufacturing	$2.23 billion	3.19	$322.22 million	$7.84	21.80

Compagnie de Saint-Gobain has higher revenue and earnings than Simpson Manufacturing.

Dividends

Compagnie de Saint-Gobain pays an annual dividend of $0.31 per share and has a dividend yield of 1.4%. Simpson Manufacturing pays an annual dividend of $1.16 per share and has a dividend yield of 0.7%. Simpson Manufacturing pays out 14.8% of its earnings in the form of a dividend. Simpson Manufacturing has increased its dividend for 11 consecutive years.

Analyst Ratings

This is a summary of current ratings for Compagnie de Saint-Gobain and Simpson Manufacturing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compagnie de Saint-Gobain	0	4	0	2	2.67
Simpson Manufacturing	0	2	1	0	2.33

Simpson Manufacturing has a consensus price target of $191.00, suggesting a potential upside of 11.77%. Given Simpson Manufacturing’s higher possible upside, analysts clearly believe Simpson Manufacturing is more favorable than Compagnie de Saint-Gobain.

Insider and Institutional Ownership

93.7% of Simpson Manufacturing shares are owned by institutional investors. 0.4% of Simpson Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Compagnie de Saint-Gobain and Simpson Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compagnie de Saint-Gobain	N/A	N/A	N/A
Simpson Manufacturing	14.53%	17.72%	11.57%

Summary

Simpson Manufacturing beats Compagnie de Saint-Gobain on 9 of the 15 factors compared between the two stocks.

About Compagnie de Saint-Gobain

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for the construction and industrial markets worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and vehicles under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, and Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands. It also provides mortars and construction chemicals under the Weber, Chryso, and GCP brands; exterior products comprising asphalt and composite shingles, solar roofing solutions, roll roofing systems, and accessories under the CertainTeed and Brasilit brands; and pipes under the PAM brand, as well as abrasives, adhesives, sealants, tapes, composites, and films. In addition, the company provides interior and exterior systems for construction and housing sectors; ceramics under the SEFPRO brand; polymer shakes and shingle, and insulation cladding solutions; and barriers, terraces, and balustrades. Further, it distributes heavy building materials; plumbing, heating, ventilation, and sanitaryware products; timber and byproducts; bathrooms and kitchens; and site equipment, PPEs, and tools. The company was founded in 1665 and is headquartered in Courbevoie, France.

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.