Head to Head Survey: Grafton Group (OTCMKTS:GROUF) & Obayashi (OTCMKTS:OBYCF)

Obayashi (OTCMKTS:OBYCF) and Grafton Group (OTCMKTS:GROUF) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Volatility & Risk

Obayashi has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Obayashi and Grafton Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Obayashi	7.06%	9.60%	3.90%
Grafton Group	N/A	N/A	N/A

Institutional and Insider Ownership

8.2% of Grafton Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Obayashi and Grafton Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obayashi	$17.21 billion	1.11	$976.81 million	$1.72	15.70
Grafton Group	$2.92 billion	N/A	$155.92 million	N/A	N/A

Obayashi has higher revenue and earnings than Grafton Group.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Obayashi and Grafton Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obayashi	0	0	0	0	0.00
Grafton Group	0	0	1	0	3.00

Summary

Obayashi beats Grafton Group on 5 of the 9 factors compared between the two stocks.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, river works, urban civil engineering structures, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in urban areas, as well as property management activities; solar, biomass, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company provides non-life insurance agency business. Further, it engages in the provision of urban redevelopment, contracted operations, and facility management services, as well as M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.

About Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands. The company’s Retailing segment retails home and garden products through stores, including DIY products, paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products under the Woodie’s brand. Its Manufacturing segment manufactures dry mortars and wooden staircases; and drainage, ducting and roofline systems under the CPI Mortar, StairBox, and MFP brand names. Grafton Group plc was founded in 1902 and is based in Dublin, Ireland.