Critical Review: Zealand Pharma A/S (OTCMKTS:ZLDPF) vs. Grafton Group (OTCMKTS:GROUF)

Grafton Group (OTCMKTS:GROUF) and Zealand Pharma A/S (OTCMKTS:ZLDPF) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Grafton Group and Zealand Pharma A/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grafton Group	0	0	0	0	0.00
Zealand Pharma A/S	0	0	3	0	3.00

Profitability

This table compares Grafton Group and Zealand Pharma A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grafton Group	N/A	N/A	N/A
Zealand Pharma A/S	-1,375.16%	-18.49%	-16.57%

Valuation and Earnings

This table compares Grafton Group and Zealand Pharma A/S”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grafton Group	$2.51 billion	1.12	$185.00 million	N/A	N/A
Zealand Pharma A/S	$49.75 million	N/A	-$102.18 million	($2.43)	-42.08

Grafton Group has higher revenue and earnings than Zealand Pharma A/S.

Volatility & Risk

Grafton Group has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Zealand Pharma A/S has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

8.2% of Grafton Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Grafton Group beats Zealand Pharma A/S on 6 of the 9 factors compared between the two stocks.

About Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands. The company’s Retailing segment retails home and garden products through stores, including DIY products, paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products under the Woodie’s brand. Its Manufacturing segment manufactures dry mortars and wooden staircases; and drainage, ducting and roofline systems under the CPI Mortar, StairBox, and MFP brand names. Grafton Group plc was founded in 1902 and is based in Dublin, Ireland.

About Zealand Pharma A/S

Zealand Pharma A/S, a biotechnology company, engages in the discovery, development, and commercialization of peptide-based medicines in Denmark. It has a portfolio of medicines focusing on gastrointestinal and metabolic diseases, and other specialty disease areas with unmet medical needs. The company offers Dasiglucagon, a single use syringe or autoinjector for the treatment of severe hypoglycemia; and Dasiglucagon bi-hormone artificial pancreas systems containing insulin and dasiglucagon. Its pipeline includes Dasiglucagon that is in Phase III clinical trials for treating congenital hyperinsulinism. The company is also developing glepaglutide, a long acting GLP-2 analog, which is in Phase III clinical trials for the treatment of short bowel syndrome. The company was incorporated in 1997 and is based in Søborg, Denmark.