Grafton Group (GFTU) Competitors

Diploma (LON:DPLM) and Grafton Group (LON:GFTU) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, media sentiment, profitability, earnings, institutional ownership, risk, dividends and valuation.

Do institutionals and insiders believe in DPLM or GFTU?

79.5% of Diploma shares are held by institutional investors. Comparatively, 0.0% of Grafton Group shares are held by institutional investors. 1.1% of Diploma shares are held by company insiders. Comparatively, 9.3% of Grafton Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has higher earnings & valuation, DPLM or GFTU?

Grafton Group has higher revenue and earnings than Diploma. Grafton Group is trading at a lower price-to-earnings ratio than Diploma, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diploma	£1.45B	4.94	£115.40M	£1.24	4,314.16
Grafton Group	£2.40B	0.90	£127.90M	£0.92	1,015.47

Is DPLM or GFTU more profitable?

Diploma has a net margin of 9.25% compared to Grafton Group's net margin of 5.79%. Diploma's return on equity of 13.18% beat Grafton Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diploma	9.25%	13.18%	8.32%
Grafton Group	5.79%	8.08%	3.60%

Which has more risk & volatility, DPLM or GFTU?

Diploma has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Grafton Group has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Is DPLM or GFTU a better dividend stock?

Diploma pays an annual dividend of GBX 0.59 per share and has a dividend yield of 0.0%. Grafton Group pays an annual dividend of GBX 0.31 per share and has a dividend yield of 0.0%. Diploma pays out 47.7% of its earnings in the form of a dividend. Grafton Group pays out 33.3% 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. Grafton Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media refer more to DPLM or GFTU?

In the previous week, Diploma had 6 more articles in the media than Grafton Group. MarketBeat recorded 7 mentions for Diploma and 1 mentions for Grafton Group. Diploma's average media sentiment score of 0.56 beat Grafton Group's score of 0.00 indicating that Diploma is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diploma	0 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Grafton Group	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts recommend DPLM or GFTU?

Diploma currently has a consensus price target of GBX 5,365, indicating a potential upside of 0.05%. Grafton Group has a consensus price target of GBX 1,100, indicating a potential upside of 18.35%. Given Grafton Group's stronger consensus rating and higher probable upside, analysts clearly believe Grafton Group is more favorable than Diploma.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diploma	0 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.50
Grafton Group	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00

Summary

Diploma beats Grafton Group on 10 of the 18 factors compared between the two stocks.