Grafton Group (GFTU) Competitors

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

Is GFTU or DPLM 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
Grafton Group	5.79%	8.08%	3.60%
Diploma	9.25%	13.18%	8.32%

Does the MarketBeat Community favor GFTU or DPLM?

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

Which has better earnings & valuation, GFTU or DPLM?

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
Grafton Group	£2.21B	0.82	£127.90M	£65.21	14.13
Diploma	£1.25B	4.25	£115.40M	£87.00	45.73

Do institutionals and insiders believe in GFTU or DPLM?

58.3% of Grafton Group shares are owned by institutional investors. Comparatively, 81.5% of Diploma shares are owned by institutional investors. 11.5% of Grafton Group shares are owned by company insiders. Comparatively, 0.5% of Diploma 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 GFTU or DPLM a better dividend stock?

Grafton Group pays an annual dividend of GBX 37 per share and has a dividend yield of 4.0%. Diploma pays an annual dividend of GBX 57 per share and has a dividend yield of 1.4%. Grafton Group pays out 56.7% of its earnings in the form of a dividend. Diploma pays out 65.5% 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.

Do analysts rate GFTU or DPLM?

Grafton Group presently has a consensus target price of GBX 1,120, suggesting a potential upside of 21.53%. Diploma has a consensus target price of GBX 4,567.50, suggesting a potential upside of 14.80%. Given Grafton Group's stronger consensus rating and higher possible upside, equities analysts plainly believe Grafton Group is more favorable than Diploma.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grafton Group	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Diploma	0 Sell rating(s)	2 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.60

Does the media prefer GFTU or DPLM?

In the previous week, Grafton Group and Grafton Group both had 1 articles in the media. Grafton Group's average media sentiment score of 0.67 beat Diploma's score of 0.00 indicating that Grafton Group is being referred to more favorably in the media.

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

Which has more risk & volatility, GFTU or DPLM?

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

Summary

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