CSR (OTCMKTS:CSRLF) and Griffon (NYSE:GFF) Financial Analysis

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

Analyst Ratings

This is a summary of current recommendations and price targets for CSR and Griffon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSR	0	0	0	0	0.00
Griffon	0	1	1	2	3.25

Griffon has a consensus target price of $122.50, suggesting a potential upside of 17.17%. Given Griffon’s stronger consensus rating and higher probable upside, analysts plainly believe Griffon is more favorable than CSR.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CSR	N/A	N/A	N/A
Griffon	8.08%	249.31%	12.64%

Dividends

CSR pays an annual dividend of $0.10 per share and has a dividend yield of 1.7%. Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 0.8%. CSR pays out 45.7% of its earnings in the form of a dividend. Griffon pays out 22.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Griffon has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

30.6% of CSR shares are owned by institutional investors. Comparatively, 73.2% of Griffon shares are owned by institutional investors. 10.2% of Griffon shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares CSR and Griffon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSR	N/A	N/A	N/A	$0.22	26.25
Griffon	$2.52 billion	1.88	$51.11 million	$3.92	26.67

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

Summary

Griffon beats CSR on 14 of the 15 factors compared between the two stocks.

About CSR

CSR Limited, together with its subsidiaries, engages in the manufacture and supply of building products for residential and commercial constructions in Australia and New Zealand. It operates through Building Products, Property, and Aluminium segments. The Building Products segment offers interior systems, including gyprock plasterboards, Martini acoustic insulation products, and Rondo rolled formed steel products, as well as Himmel and Potter interior systems that supplies ceiling tiles, aluminum partitions, and architectural hardware products; construction systems, such as Hebel autoclaved aerated concrete products, AFS walling systems, cladding systems, and Cemintel fiber cement; masonry and insulation solutions comprising Bradford insulations, Bradford energy solutions, Edmonds ventilation systems, and Monier roofing solutions; and bricks, including PGH Bricks and pavers. The company's Property segment sells former operating sites. This segment is also involved in the large-scale developments in New South Wales, Queensland, and Victoria. Its Aluminium segment offers aluminium ingots, billets, and slabs. CSR Limited was founded in 1855 and is headquartered in North Ryde, Australia.

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.