Griffon Corporation (GFF) vs Trex Company, Inc. (TREX)

Griffon Corporation and Trex Company, Inc. are both Building Products & Equipment companies. Trex Company, Inc. is the larger, with a market value of $4.7B against $4.2B — 1.1× the size. Griffon Corporation trades at the lower P/E: 23.2× against 27.2×. Griffon Corporation grew revenue faster over the last twelve months: 18.2% against 6.97%. Trex Company, Inc. has the higher net margin (14.7% vs 6.98%) and the lower return on invested capital (12.1% vs 22.1%). Across the 22 metrics below, Griffon Corporation leads on 12 and Trex Company, Inc. on 10.

Valuation

Metric GFF TREX Building Products & Equipment median
P/E 23.15 27.22 23.15
P/S 1.59 3.87 2.02
P/B 31.61 4.63 2.81
Price to free cash flow 12.95 23.55 16.84
EV/EBITDA 10.07 15.69 12.85
EV/Sales 2.04 4.08 2.04
Earnings yield 4.32% 3.67% 2.76%
Free cash flow yield 7.72% 4.25% 4.23%

Profitability

Metric GFF TREX Building Products & Equipment median
Gross margin 41.40% 38.20% 29.19%
Operating margin 17.61% 20.17% 6.99%
Net margin 6.98% 14.68% 4.05%
Free cash flow margin 12.30% 16.45% 7.60%
Return on equity 185.41% 17.74% 9.28%
Return on assets 9.12% 11.21% 2.88%
Return on invested capital 22.08% 12.12% 5.16%

Growth

Metric GFF TREX Building Products & Equipment median
Revenue growth (TTM) 18.22% 6.97% 3.11%
EPS growth (last fiscal year) (74.23%) (15.31%) (34.13%)
Revenue growth, 5-year CAGR 4.05% 5.92% 5.37%
Net income growth, 5-year CAGR (0.88%) 1.63% 0.00%

Health

Metric GFF TREX Building Products & Equipment median
Debt to equity 9.75 0.25 0.43
Current ratio 2.41 1.06 1.82
Net debt to EBITDA 2.52 0.40 0.98

Dividend

Metric GFF TREX Building Products & Equipment median
Dividend yield 0.95% — 1.43%
Payout ratio 0.22 — 0.29

Size

Metric GFF TREX Building Products & Equipment median
Market cap 4.22b 4.71b 1.17b

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