Simpson Manufacturing (NYSE:SSD – Get Free Report) and Resideo Technologies (NYSE:REZI – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Analyst Ratings
This is a summary of recent recommendations for Simpson Manufacturing and Resideo Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simpson Manufacturing | 1 | 2 | 3 | 0 | 2.33 |
| Resideo Technologies | 0 | 3 | 5 | 0 | 2.62 |
Simpson Manufacturing presently has a consensus price target of $216.25, indicating a potential upside of 17.26%. Resideo Technologies has a consensus price target of $31.75, indicating a potential upside of 78.16%. Given Resideo Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Resideo Technologies is more favorable than Simpson Manufacturing.
Risk and Volatility
Simpson Manufacturing has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.
Institutional & Insider Ownership
93.7% of Simpson Manufacturing shares are owned by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are owned by institutional investors. 0.3% of Simpson Manufacturing shares are owned by insiders. Comparatively, 1.6% of Resideo Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Simpson Manufacturing and Resideo Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simpson Manufacturing | 15.65% | 18.45% | 12.32% |
| Resideo Technologies | 5.37% | 17.79% | 5.13% |
Valuation & Earnings
This table compares Simpson Manufacturing and Resideo Technologies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Simpson Manufacturing | $2.33 billion | 3.25 | $345.08 million | $9.15 | 20.15 |
| Resideo Technologies | $7.47 billion | 0.36 | -$527.00 million | $2.26 | 7.89 |
Simpson Manufacturing has higher earnings, but lower revenue than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Simpson Manufacturing, indicating that it is currently the more affordable of the two stocks.
Summary
Simpson Manufacturing beats Resideo Technologies on 8 of the 14 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 Resideo Technologies
Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.
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