Critical Contrast: INDUS (OTCMKTS:INDHF) and Griffon (NYSE:GFF)

INDUS (OTCMKTS:INDHF) and Griffon (NYSE:GFF) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for INDUS and Griffon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INDUS	0	0	0	0	N/A
Griffon	0	0	2	1	3.33

Griffon has a consensus price target of $80.33, indicating a potential upside of 28.76%. Given Griffon’s higher probable upside, analysts plainly believe Griffon is more favorable than INDUS.

Profitability

This table compares INDUS and Griffon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INDUS	N/A	N/A	N/A
Griffon	7.27%	96.05%	10.25%

Earnings & Valuation

This table compares INDUS and Griffon’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INDUS	N/A	N/A	N/A	N/A	N/A
Griffon	$2.61 billion	1.19	$77.62 million	$3.79	16.46

Griffon has higher revenue and earnings than INDUS.

Insider and Institutional Ownership

73.2% of Griffon shares are held by institutional investors. 16.1% of Griffon shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Griffon beats INDUS on 9 of the 9 factors compared between the two stocks.

About INDUS

INDUS Holding AG is a private equity firm specializing in mergers and acquisitions and corporate spin-offs. The firm does not invest in retail and service companies, pure trading or consumer goods businesses, companies with significant dependencies on individual business partners, start-ups, turnarounds, mature businesses, and companies undergoing restructuring. The firm typically invests in middle market and mature companies. It primarily makes long-term investments in medium-sized manufacturing companies in energy and environmental technology; infrastructure and logistics technology, intelligent logistic infrastructure; automation, measurement and control technology; medical engineering; life science; construction and safety technology; industry; digitalization; green tech; medical equipment for the ageing society; innovative construction technology; and public and private security sectors. The firm acquires small and medium-sized companies based in Germany, Switzerland, Austria, and the German-speaking regions of Europe. It typically invests in companies with annual sales between 20 million ($21.71 million) and 100 million ($108.58 million), equity rate above 30 percent, and double digit EBIT margin. It prefers to invest in companies with low level/no liabilities to banks. The firm seeks to take a majority stake in its portfolio companies initially and building it up to 100 percent. It prefers to acquire mainly owner-managed companies. It also seeks second-level acquisition opportunities. The firm invests through its balance sheet. INDUS Holding AG was founded in 1989 and is based in Bergisch Gladbach, Germany.

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.