Grafton Group (GFTU) Competitors

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

Which has more volatility and risk, DPLM or GFTU?

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

Does the media favor DPLM or GFTU?

In the previous week, Diploma had 13 more articles in the media than Grafton Group. MarketBeat recorded 13 mentions for Diploma and 0 mentions for Grafton Group. Grafton Group's average media sentiment score of 1.31 beat Diploma's score of 0.75 indicating that Grafton Group is being referred to more favorably in the news media.

Company	Overall Sentiment
Diploma	Positive
Grafton Group	Positive

Do institutionals and insiders believe in DPLM or GFTU?

81.5% of Diploma shares are owned by institutional investors. Comparatively, 58.3% of Grafton Group shares are owned by institutional investors. 0.5% of Diploma shares are owned by company insiders. Comparatively, 11.5% of Grafton Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Is DPLM or GFTU a better dividend stock?

Diploma pays an annual dividend of GBX 57 per share and has a dividend yield of 1.2%. Grafton Group pays an annual dividend of GBX 37 per share and has a dividend yield of 3.7%. Diploma pays out 65.5% of its earnings in the form of a dividend. Grafton Group pays out 56.7% 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.

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%

Does the MarketBeat Community believe in DPLM or GFTU?

Grafton Group received 67 more outperform votes than Diploma when rated by MarketBeat users. However, 61.71% of users gave Diploma an outperform vote while only 57.59% of users gave Grafton Group an outperform vote.

Company	Underperform	Outperform
Diploma	Outperform Votes 282 61.71%	Underperform Votes 175 38.29%
Grafton Group	Outperform Votes 349 57.59%	Underperform Votes 257 42.41%

Do analysts rate DPLM or GFTU?

Diploma currently has a consensus price target of GBX 4,760, suggesting a potential downside of 0.09%. Grafton Group has a consensus price target of GBX 1,100, suggesting a potential upside of 9.83%. Given Grafton Group's stronger consensus rating and higher possible upside, analysts plainly 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)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33
Grafton Group	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has better 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	£1.25B	5.09	£115.40M	£87.00	54.76
Grafton Group	£2.21B	0.89	£127.90M	£65.21	15.36

Summary

Grafton Group beats Diploma on 10 of the 19 factors compared between the two stocks.