Materion (NYSE: MTRN) and Park-Ohio (NASDAQ:PKOH) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Valuation and Earnings
This table compares Materion and Park-Ohio’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Materion||$1.14 billion||0.92||$11.45 million||$1.72||30.26|
|Park-Ohio||$1.41 billion||0.34||$28.60 million||$3.23||11.56|
Risk & Volatility
Materion has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Park-Ohio has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.
Materion pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Materion pays out 23.3% of its earnings in the form of a dividend. Park-Ohio pays out 15.5% 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. Materion has raised its dividend for 5 consecutive years. Park-Ohio is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current recommendations for Materion and Park-Ohio, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Materion currently has a consensus price target of $48.00, indicating a potential downside of 7.78%. Park-Ohio has a consensus price target of $37.00, indicating a potential downside of 0.94%. Given Park-Ohio’s higher possible upside, analysts plainly believe Park-Ohio is more favorable than Materion.
Insider & Institutional Ownership
93.2% of Materion shares are owned by institutional investors. Comparatively, 55.2% of Park-Ohio shares are owned by institutional investors. 1.4% of Materion shares are owned by company insiders. Comparatively, 31.2% of Park-Ohio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Materion and Park-Ohio’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Park-Ohio beats Materion on 10 of the 15 factors compared between the two stocks.
Materion Company Profile
Materion Corporation, through its subsidiaries, is an integrated producer of engineered materials used in a range of electrical, electronic, thermal, and structural applications. The Company operates in four segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Performance Alloys and Composites segment consists of businesses, such as Performance Metals and Technical Materials. The Advanced Materials segment produces chemicals, microelectronics packaging, precious metal, non-precious metal and specialty metal products. The Precision Coatings segment includes units, such as Precision Optics and Large Area Coatings. Its products include inorganic chemicals and powders, specialty coatings, specialty engineered beryllium and copper-based alloys, beryllium composites, ceramics and engineered clad, and plated metal systems.
Park-Ohio Company Profile
Park-Ohio Holdings Corp., through its subsidiaries, provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Asia, Europe, Canada, Mexico, and internationally. The company's Supply Technologies segment offers Total Supply Management solution, including engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, including valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products. This segment also engineers and manufactures precision cold formed and cold extruded fasteners and other products, including locknuts, SPAC nuts, and wheel hardware. The company's Assembly Components segment manufactures aluminum products, high pressure direct fuel injection fuel rails and pipes, and fuel filler pipes, as well as flexible multi-layer plastic and rubber assemblies; and turbo charging hoses and turbo coolant hoses. This segment also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly; and supplies aluminum components. The company's Engineered Products segment designs and manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products primarily for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; provides field services; and offers aerospace and defense structural components, and railcar center plates and draft lugs. The company was founded in 1961 and is headquartered in Cleveland, Ohio.
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