Head-To-Head Comparison: Grafton Group (OTCMKTS:GROUF) versus Arcosa (NYSE:ACA)

Grafton Group (OTCMKTS:GROUF) and Arcosa (NYSE:ACA) are both mid-cap construction companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grafton Group	N/A	N/A	N/A
Arcosa	7.23%	8.64%	4.41%

Volatility and Risk

Grafton Group has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Arcosa has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Grafton Group and Arcosa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grafton Group	0	0	1	0	3.00
Arcosa	0	1	3	0	2.75

Arcosa has a consensus price target of $120.00, suggesting a potential upside of 12.46%. Given Arcosa’s higher probable upside, analysts plainly believe Arcosa is more favorable than Grafton Group.

Institutional & Insider Ownership

8.2% of Grafton Group shares are held by institutional investors. Comparatively, 90.7% of Arcosa shares are held by institutional investors. 1.2% of Arcosa shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Grafton Group and Arcosa”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grafton Group	$3.32 billion	0.73	$180.07 million	N/A	N/A
Arcosa	$2.88 billion	1.81	$208.40 million	$4.24	25.17

Arcosa has lower revenue, but higher earnings than Grafton Group.

Summary

Arcosa beats Grafton Group on 10 of the 12 factors compared between the two stocks.

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.

About Arcosa

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and transportation equipment; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.