Owens Corning (NYSE:OC – Get Free Report) and Griffon (NYSE:GFF – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares Owens Corning and Griffon’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Owens Corning | -6.81% | 20.52% | 6.21% |
| Griffon | 8.08% | 249.31% | 12.64% |
Earnings and Valuation
This table compares Owens Corning and Griffon”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Owens Corning | $10.10 billion | 1.20 | -$522.00 million | ($6.61) | -22.77 |
| Griffon | $2.52 billion | 1.93 | $51.11 million | $0.13 | 815.23 |
Griffon has lower revenue, but higher earnings than Owens Corning. Owens Corning is trading at a lower price-to-earnings ratio than Griffon, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
88.4% of Owens Corning shares are owned by institutional investors. Comparatively, 73.2% of Griffon shares are owned by institutional investors. 0.9% of Owens Corning shares are owned by company insiders. Comparatively, 10.2% of Griffon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Owens Corning and Griffon, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Owens Corning | 1 | 6 | 9 | 1 | 2.59 |
| Griffon | 0 | 2 | 1 | 1 | 2.75 |
Owens Corning currently has a consensus price target of $159.75, suggesting a potential upside of 6.12%. Griffon has a consensus price target of $122.50, suggesting a potential upside of 15.59%. Given Griffon’s stronger consensus rating and higher probable upside, analysts clearly believe Griffon is more favorable than Owens Corning.
Dividends
Owens Corning pays an annual dividend of $3.16 per share and has a dividend yield of 2.1%. Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 0.8%. Owens Corning pays out -47.8% of its earnings in the form of a dividend. Griffon pays out 676.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Owens Corning has increased its dividend for 10 consecutive years and Griffon has increased its dividend for 1 consecutive years. Owens Corning is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Owens Corning has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Griffon has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Summary
Griffon beats Owens Corning on 11 of the 17 factors compared between the two stocks.
About Owens Corning
Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications. This segment sells its products through distributors, home centers, and lumberyards, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and composite lumber. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.
About Griffon
Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.
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