Global Power Equipment Group (NASDAQ: GLPW) and Eaton Corporation, PLC (NYSE:ETN) are both industrial goods companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitabiliy, valuation, dividends and earnings.
Earnings and Valuation
This table compares Global Power Equipment Group and Eaton Corporation, PLC’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Global Power Equipment Group | $589.00 million | 0.09 | -$25.53 million | N/A | N/A |
| Eaton Corporation, PLC | $19.78 billion | 1.68 | $3.21 billion | $4.30 | 17.27 |
Eaton Corporation, PLC has higher revenue and earnings than Global Power Equipment Group.
Dividends
Eaton Corporation, PLC pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. Global Power Equipment Group does not pay a dividend. Eaton Corporation, PLC pays out 55.8% of its earnings in the form of a dividend. Eaton Corporation, PLC has increased its dividend for 7 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Global Power Equipment Group and Eaton Corporation, PLC, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Power Equipment Group | 0 | 0 | 0 | 0 | N/A |
| Eaton Corporation, PLC | 1 | 11 | 7 | 0 | 2.32 |
Eaton Corporation, PLC has a consensus target price of $77.83, suggesting a potential upside of 4.81%. Given Eaton Corporation, PLC’s higher possible upside, analysts plainly believe Eaton Corporation, PLC is more favorable than Global Power Equipment Group.
Institutional & Insider Ownership
76.3% of Eaton Corporation, PLC shares are held by institutional investors. 0.8% of Eaton Corporation, PLC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Global Power Equipment Group and Eaton Corporation, PLC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Power Equipment Group | 3.41% | 8.49% | 5.99% |
| Eaton Corporation, PLC | 9.86% | 12.82% | 6.33% |
Summary
Eaton Corporation, PLC beats Global Power Equipment Group on 12 of the 13 factors compared between the two stocks.
About Global Power Equipment Group
Global Power Equipment Group Inc. is a design, engineering and manufacturing company providing an array of equipment and services to the global power infrastructure, energy and process industries. The Products segment includes two primary product categories: Mechanical Solutions, which designs, engineers and manufactures a portfolio of equipment for utility-scale natural gas turbines, and Electrical Solutions, which provides custom-configured electrical houses and generator enclosures for various industries. The Services segment provides lifecycle maintenance, repair, on-site specialty support, outage management, construction and fabrication services for the power generation, industrial, chemical/petrochemical processing, and oil and gas industries. Its products portfolio span from auxiliary equipment for gas turbines to small, high alloy parts, such as seals, shims and brackets. It also offers a range of services that have been managing plant asset value.
About Eaton Corporation, PLC
Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. On January 1, 2011, it closed the acquisition of the Tuthill Coupling Group, which is a division of the Tuthill Corporation. It has five segments: Electrical Americas and Electrical Rest of World; Hydraulics; Aerospace; Truck, and Automotive. On October 1, 2010, it acquired CopperLogic, Inc. On July 15, 2010, it acquired EMC Engineers, Inc. In May 2011, it acquired Internormen Technology Group. In August 2011, it acquired IE Power, Inc. In December 2011, it acquired E.A. Pedersen Company.
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