Worthington Enterprises (NYSE:WOR) versus UFP Industries (NASDAQ:UFPI) Head-To-Head Comparison

Worthington Enterprises (NYSE:WOR) and UFP Industries (NASDAQ:UFPI) are both mid-cap construction companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

51.6% of Worthington Enterprises shares are held by institutional investors. Comparatively, 81.8% of UFP Industries shares are held by institutional investors. 3.4% of Worthington Enterprises shares are held by company insiders. Comparatively, 2.6% of UFP Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Worthington Enterprises and UFP Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Enterprises	$1.15 billion	2.83	$96.05 million	$1.91	34.29
UFP Industries	$6.65 billion	0.90	$414.56 million	$5.76	17.78

UFP Industries has higher revenue and earnings than Worthington Enterprises. UFP Industries is trading at a lower price-to-earnings ratio than Worthington Enterprises, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Worthington Enterprises has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, UFP Industries has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Dividends

Worthington Enterprises pays an annual dividend of $0.68 per share and has a dividend yield of 1.0%. UFP Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. Worthington Enterprises pays out 35.6% of its earnings in the form of a dividend. UFP Industries pays out 24.3% 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. UFP Industries has raised its dividend for 5 consecutive years. UFP Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Worthington Enterprises and UFP Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Enterprises	8.33%	16.66%	9.21%
UFP Industries	5.31%	10.95%	8.48%

Analyst Ratings

This is a breakdown of recent ratings for Worthington Enterprises and UFP Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Enterprises	1	2	1	1	2.40
UFP Industries	1	1	2	0	2.25

Worthington Enterprises presently has a consensus price target of $59.00, suggesting a potential downside of 9.92%. UFP Industries has a consensus price target of $134.00, suggesting a potential upside of 30.86%. Given UFP Industries’ higher probable upside, analysts plainly believe UFP Industries is more favorable than Worthington Enterprises.

Summary

UFP Industries beats Worthington Enterprises on 10 of the 18 factors compared between the two stocks.

About Worthington Enterprises

Worthington Enterprises, Inc. operates as an industrial manufacturing company. It operates through three segments: Building Products, Consumer Products, and Sustainable Energy Solutions. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, fire suppression tanks, chemical tanks, and foam and adhesive tanks for gas producers, and distributors. The Consumer Products segment provides products in the tools, outdoor living, and celebrations end markets. Its products include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, and drywall tools and accessories This segment sells its products primarily to mass merchandisers, retailers, and distributors under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brands. The Sustainable Energy Solutions segment sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport, and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks. The company was formerly known as Worthington Industries, Inc. Worthington Enterprises, Inc. was founded in 1955 and is headquartered in Columbus, Ohio.

About UFP Industries

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards. The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films. The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.