Head to Head Review: Worthington Enterprises (NYSE:WOR) vs. Rockwool A/S (OTCMKTS:RKWBF)

Rockwool A/S (OTCMKTS:RKWBF) and Worthington Enterprises (NYSE:WOR) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Dividends

Rockwool A/S pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Worthington Enterprises pays an annual dividend of $0.76 per share and has a dividend yield of 1.3%. Rockwool A/S pays out 17.8% 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. Rockwool A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and price targets for Rockwool A/S and Worthington Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwool A/S	0	0	0	0	0.00
Worthington Enterprises	0	2	2	0	2.50

Worthington Enterprises has a consensus target price of $65.50, suggesting a potential upside of 13.44%. Given Worthington Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe Worthington Enterprises is more favorable than Rockwool A/S.

Profitability

This table compares Rockwool A/S and Worthington Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwool A/S	N/A	N/A	N/A
Worthington Enterprises	11.30%	16.79%	9.27%

Earnings and Valuation

This table compares Rockwool A/S and Worthington Enterprises”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwool A/S	N/A	N/A	N/A	$5.65	5.21
Worthington Enterprises	$1.38 billion	2.05	$156.09 million	$3.14	18.39

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

Insider & Institutional Ownership

7.4% of Rockwool A/S shares are owned by institutional investors. Comparatively, 51.6% of Worthington Enterprises shares are owned by institutional investors. 2.5% of Worthington Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Worthington Enterprises beats Rockwool A/S on 10 of the 13 factors compared between the two stocks.

About Rockwool A/S

Rockwool A/S produces and sells stone wool insulation products in Western Europe, Eastern Europe, North America, Asia, and internationally. The company operates through two segments, Insulation and Systems segments. It offers fire-safe stone wool insulation under the ROCKWOOL brand name; acoustic solutions for ceilings and walls under the Rockfon brand name; board materials that are applied in ventilated constructions for facade cladding, soffits, roof detailing, and fascia under the Rockpanel brand name; and rootzone management solutions for controlled environment agriculture under the Grodan brand name. The company also provides stone wool-based products used in the areas of rainwater management and prefab building systems, railway vibration control, automotive, and industrial OEM applications under the ROCKWOOL, Rockdelta, and Lapinus brand names. Rockwool A/S was founded in 1909 and is based in Hedehusene, Denmark.

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.