Contrasting Worthington Enterprises (NYSE:WOR) and Tecnoglass (NYSE:TGLS)

Tecnoglass (NYSE:TGLS) and Worthington Enterprises (NYSE:WOR) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Dividends

Tecnoglass pays an annual dividend of $0.60 per share and has a dividend yield of 1.7%. Worthington Enterprises pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Tecnoglass pays out 21.1% of its earnings in the form of a dividend. Worthington Enterprises pays out 24.2% 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. Tecnoglass has increased its dividend for 4 consecutive years. Tecnoglass is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Tecnoglass and Worthington Enterprises”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tecnoglass	$983.61 million	1.56	$159.57 million	$2.84	12.20
Worthington Enterprises	$1.38 billion	2.14	$156.09 million	$3.31	18.28

Tecnoglass has higher earnings, but lower revenue than Worthington Enterprises. Tecnoglass is trading at a lower price-to-earnings ratio than Worthington Enterprises, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tecnoglass and Worthington Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tecnoglass	12.35%	17.84%	10.14%
Worthington Enterprises	11.50%	16.71%	9.29%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tecnoglass and Worthington Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecnoglass	2	0	3	0	2.20
Worthington Enterprises	0	1	1	0	2.50

Tecnoglass presently has a consensus price target of $63.33, suggesting a potential upside of 82.78%. Worthington Enterprises has a consensus price target of $75.00, suggesting a potential upside of 23.95%. Given Tecnoglass’ higher probable upside, equities analysts plainly believe Tecnoglass is more favorable than Worthington Enterprises.

Institutional and Insider Ownership

37.3% of Tecnoglass shares are owned by institutional investors. Comparatively, 51.6% of Worthington Enterprises shares are owned by institutional investors. 0.1% of Tecnoglass shares are owned by company insiders. Comparatively, 2.5% of Worthington Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Tecnoglass beats Worthington Enterprises on 9 of the 16 factors compared between the two stocks.

About Tecnoglass

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

About Worthington Enterprises

Worthington Enterprises, Inc. operates as an industrial manufacturing company. It operates through three segments: Building Products, Consumer Products, and Sustainable Energy Solutions. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, fire suppression tanks, chemical tanks, and foam and adhesive tanks for gas producers, and distributors. The Consumer Products segment provides products in the tools, outdoor living, and celebrations end markets. Its products include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, and drywall tools and accessories This segment sells its products primarily to mass merchandisers, retailers, and distributors under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brands. The Sustainable Energy Solutions segment sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport, and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks. The company was formerly known as Worthington Industries, Inc. Worthington Enterprises, Inc. was founded in 1955 and is headquartered in Columbus, Ohio.