Park-Ohio (NASDAQ: PKOH) and Barnes Group (NYSE:B) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Volatility & Risk
Park-Ohio has a beta of 3.13, meaning that its share price is 213% more volatile than the S&P 500. Comparatively, Barnes Group has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Park-Ohio pays out 21.8% of its earnings in the form of a dividend. Barnes Group pays out 52.3% 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. Barnes Group has increased its dividend for 5 consecutive years. Park-Ohio is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Park-Ohio and Barnes Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Park-Ohio||$1.41 billion||0.38||$28.60 million||$2.29||18.76|
|Barnes Group||$1.44 billion||2.30||$59.41 million||$1.07||57.94|
Barnes Group has higher revenue and earnings than Park-Ohio. Park-Ohio is trading at a lower price-to-earnings ratio than Barnes Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Park-Ohio and Barnes Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Park-Ohio presently has a consensus price target of $37.00, indicating a potential downside of 13.85%. Barnes Group has a consensus price target of $67.00, indicating a potential upside of 8.08%. Given Barnes Group’s stronger consensus rating and higher possible upside, analysts plainly believe Barnes Group is more favorable than Park-Ohio.
This table compares Park-Ohio and Barnes Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
55.3% of Park-Ohio shares are held by institutional investors. Comparatively, 87.9% of Barnes Group shares are held by institutional investors. 31.0% of Park-Ohio shares are held by company insiders. Comparatively, 8.5% of Barnes Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Barnes Group beats Park-Ohio on 11 of the 17 factors compared between the two stocks.
Park-Ohio Holdings Corp. is a diversified international company providing supply chain management outsourcing services, capital equipment used on their production lines and manufactured components used to assemble its products. The Company operates in three segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides its customers with Total Supply Management, which manages every aspect of supplying production parts and materials to its customers’ manufacturing floor, from strategic planning to program implementation. Assembly Components manufactures products oriented towards fuel efficiency and reduced emission standards. Engineered Products segment operates a group of manufacturing businesses that design and manufacture a range of products, including induction heating and melting systems, pipe threading systems, and forged and machined products. It operates through the subsidiaries of its direct subsidiary, Park-Ohio Industries, Inc.
About Barnes Group
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
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