NWPX Infrastructure (NASDAQ:NWPX) vs. Simpson Manufacturing (NYSE:SSD) Critical Review

Simpson Manufacturing (NYSE:SSD) and NWPX Infrastructure (NASDAQ:NWPX) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Volatility & Risk

Simpson Manufacturing has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, NWPX Infrastructure has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Simpson Manufacturing and NWPX Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simpson Manufacturing	1	2	3	0	2.33
NWPX Infrastructure	0	2	2	1	2.80

Simpson Manufacturing presently has a consensus price target of $216.00, suggesting a potential upside of 15.08%. NWPX Infrastructure has a consensus price target of $110.00, suggesting a potential downside of 10.63%. Given Simpson Manufacturing’s higher possible upside, analysts clearly believe Simpson Manufacturing is more favorable than NWPX Infrastructure.

Profitability

This table compares Simpson Manufacturing and NWPX Infrastructure’s 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%
NWPX Infrastructure	8.49%	12.40%	8.08%

Insider & Institutional Ownership

93.7% of Simpson Manufacturing shares are held by institutional investors. Comparatively, 80.6% of NWPX Infrastructure shares are held by institutional investors. 0.3% of Simpson Manufacturing shares are held by insiders. Comparatively, 3.3% of NWPX Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Simpson Manufacturing and NWPX Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simpson Manufacturing	$2.33 billion	3.31	$345.08 million	$9.15	20.51
NWPX Infrastructure	$526.00 million	2.26	$35.41 million	$4.99	24.67

Simpson Manufacturing has higher revenue and earnings than NWPX Infrastructure. Simpson Manufacturing is trading at a lower price-to-earnings ratio than NWPX Infrastructure, indicating that it is currently the more affordable of the two stocks.

Summary

Simpson Manufacturing beats NWPX Infrastructure on 11 of the 15 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 NWPX Infrastructure

Northwest Pipe Company, together with its subsidiaries, engages in the manufacture and supply of water-related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, this segment makes products for industrial plant piping systems and certain structural applications. The Precast segment provides stormwater and wastewater technology products, precast, and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults and catch basins, pump lift stations, oil water separators, biofiltration units, steel casing pipes, and bar-wrapped concrete cylinder pipes, as well as pipeline system joints, fittings, specialized components, and other environmental and engineered solutions. The company sells its water infrastructure products under ParkUSA, Geneva Pipe and Precast, Permalok, and Northwest Pipe Company brands primarily to installation contractors. Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.