Rectitude (NASDAQ:RECT) and Simpson Manufacturing (NYSE:SSD) Critical Comparison

Rectitude (NASDAQ:RECT) and Simpson Manufacturing (NYSE:SSD) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

93.7% of Simpson Manufacturing shares are owned by institutional investors. 0.4% of Simpson Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Rectitude and Simpson Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Simpson Manufacturing	14.51%	18.29%	11.59%

Earnings and Valuation

This table compares Rectitude and Simpson Manufacturing”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$41.35 million	2.60	$2.49 million	N/A	N/A
Simpson Manufacturing	$2.22 billion	3.21	$353.99 million	$7.57	22.28

Simpson Manufacturing has higher revenue and earnings than Rectitude.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rectitude and Simpson Manufacturing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	0	0	0	0	0.00
Simpson Manufacturing	0	0	1	0	3.00

Simpson Manufacturing has a consensus price target of $218.00, indicating a potential upside of 29.25%. Given Simpson Manufacturing’s stronger consensus rating and higher possible upside, analysts clearly believe Simpson Manufacturing is more favorable than Rectitude.

Summary

Simpson Manufacturing beats Rectitude on 11 of the 11 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Simpson Manufacturing

Simpson Manufacturing Co., Inc., through its subsidiaries, designs, engineers, manufactures, and sells structural solutions for wood, concrete, and steel connections. The company offers wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and pre-fabricated lateral systems for use in light-frame construction; and concrete construction products comprising adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber-reinforced materials, and other repair products for use in concrete, masonry, and steel construction, as well as grouts, coatings, sealers, mortars, fiberglass and fiber-reinforced polymer systems, and asphalt products for use in concrete construction repair, and strengthening and protection products. It also provides connectors and lateral products for wood framing, timber and offsite construction, structural steel construction, and cold-formed steel applications; and mechanical and adhesive anchors for concrete and masonry construction applications. In addition, the company offers engineering and design services, as well as software solutions that facilitate the specification, selection, and use of its products. It markets its products to the residential construction, light industrial and commercial construction, infrastructure construction, remodeling, and do-it-yourself markets in the United States, Canada, France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands, Belgium, Spain, Italy, Romania, Sweden, Norway, Australia, New Zealand, China, Taiwan, and Vietnam. The company was founded in 1956 and is headquartered in Pleasanton, California.