Head-To-Head Review: Simpson Manufacturing (NYSE:SSD) and NWPX Infrastructure (NASDAQ:NWPX)

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

Risk & Volatility

NWPX Infrastructure has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Simpson Manufacturing has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Profitability

This table compares NWPX Infrastructure and Simpson Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NWPX Infrastructure	8.49%	12.22%	7.93%
Simpson Manufacturing	15.65%	18.45%	12.32%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NWPX Infrastructure	$526.00 million	2.19	$35.41 million	$4.99	23.99
Simpson Manufacturing	$2.33 billion	3.49	$345.08 million	$9.15	21.63

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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NWPX Infrastructure and Simpson Manufacturing, as reported by MarketBeat.com.

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

NWPX Infrastructure presently has a consensus target price of $110.00, indicating a potential downside of 8.12%. Simpson Manufacturing has a consensus target price of $216.25, indicating a potential upside of 9.24%. Given Simpson Manufacturing’s higher possible upside, analysts plainly believe Simpson Manufacturing is more favorable than NWPX Infrastructure.

Summary

Simpson Manufacturing beats NWPX Infrastructure on 11 of the 15 factors compared between the two stocks.

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.

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.