AAON, Inc. (AAON) vs Griffon Corporation (GFF)

AAON, Inc. and Griffon Corporation are both Building Products & Equipment companies. AAON, Inc. is the larger, with a market value of $7.0B against $4.4B — 1.6× the size. Griffon Corporation trades at the lower P/E: 24.5× against 45.7×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against 18.2%. AAON, Inc. has the higher net margin (8.24% vs 6.98%) and the lower return on invested capital (9.31% vs 22.1%). Both pay a dividend; Griffon Corporation yields more (0.89% vs 0.51%). Across the 22 metrics below, Griffon Corporation leads on 12 and AAON, Inc. on 10.

Valuation

Metric AAON GFF Building Products & Equipment median
P/E 45.69 24.54 24.54
P/S 3.79 1.69 2.00
P/B 7.25 33.50 3.02
Price to free cash flow n/m 13.73 18.49
EV/EBITDA 25.90 10.54 12.63
EV/Sales 4.01 2.14 2.14
Earnings yield 2.19% 4.08% 2.74%
Free cash flow yield (1.77%) 7.29% 3.58%

Profitability

Metric AAON GFF Building Products & Equipment median
Gross margin 25.57% 41.40% 29.19%
Operating margin 11.05% 17.61% 6.84%
Net margin 8.24% 6.98% 4.05%
Free cash flow margin (6.71%) 12.30% 8.72%
Return on equity 17.28% 185.41% 9.28%
Return on assets 9.76% 9.12% 2.88%
Return on invested capital 9.31% 22.08% 5.16%

Growth

Metric AAON GFF Building Products & Equipment median
Revenue growth (TTM) 53.53% 18.22% 3.11%
EPS growth (last fiscal year) (36.14%) (74.23%) —
Revenue growth, 5-year CAGR 22.89% 4.05% 5.37%
Net income growth, 5-year CAGR 6.37% (0.88%) 0.00%

Health

Metric AAON GFF Building Products & Equipment median
Debt to equity 0.43 9.75 0.43
Current ratio 3.01 2.41 1.82
Net debt to EBITDA 1.76 2.52 0.98

Dividend

Metric AAON GFF Building Products & Equipment median
Dividend yield 0.51% 0.89% 1.20%
Payout ratio 0.18 0.13 0.04

Size

Metric AAON GFF Building Products & Equipment median
Market cap 6.99b 4.37b 1.18b

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