Barnes Group (NYSE: B) and Sun Hydraulics (NASDAQ:SNHY) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Sun Hydraulics pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Barnes Group pays out 19.4% of its earnings in the form of a dividend. Sun Hydraulics pays out 22.5% 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. Barnes Group has increased its dividend for 5 consecutive years. Barnes Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Barnes Group and Sun Hydraulics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barnes Group||$1.44 billion||2.23||$59.41 million||$2.88||21.11|
|Sun Hydraulics||$342.84 million||4.61||$31.55 million||$1.60||31.25|
Barnes Group has higher revenue and earnings than Sun Hydraulics. Barnes Group is trading at a lower price-to-earnings ratio than Sun Hydraulics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.8% of Barnes Group shares are held by institutional investors. Comparatively, 82.5% of Sun Hydraulics shares are held by institutional investors. 7.9% of Barnes Group shares are held by insiders. Comparatively, 7.8% of Sun Hydraulics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Barnes Group has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Sun Hydraulics has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
This is a breakdown of recent ratings for Barnes Group and Sun Hydraulics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Barnes Group currently has a consensus target price of $66.33, indicating a potential upside of 9.10%. Sun Hydraulics has a consensus target price of $60.75, indicating a potential upside of 21.50%. Given Sun Hydraulics’ stronger consensus rating and higher possible upside, analysts plainly believe Sun Hydraulics is more favorable than Barnes Group.
This table compares Barnes Group and Sun Hydraulics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sun Hydraulics beats Barnes Group on 9 of the 17 factors compared between the two stocks.
About Barnes Group
Barnes Group Inc. operates as an industrial and aerospace manufacturer, and service provider in the United States and internationally. Its Industrial segment offers precision components, products, and systems for applications serving various customers in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices, and energy. This segment also manufactures and supplies precision mechanical products, including mechanical springs, high-precision punched and fine-blanked components, and retention rings; force and motion solutions for sheet metal forming, heavy duty suspension, and other markets; and hot runner systems, mold cavity sensors and process control systems, and precision high cavitation mold for injection molding applications. The company's Aerospace segment produces fabricated and precision-machined components and assemblies for original equipment manufacturer turbine engine, airframe, and industrial gas turbine builders, as well as for the military. It also offers maintenance, repair, and overhaul services for jet engine components to turbine engine manufacturers, commercial airlines, and the military. In addition, this segment manufactures aerospace aftermarket spare parts. The company sells its products primarily through its direct sales force and distribution channels. Barnes Group Inc. was founded in 1857 and is headquartered in Bristol, Connecticut.
About Sun Hydraulics
Sun Hydraulics Corporation designs, manufactures, and sells screw-in hydraulic cartridge valves, manifolds, and integrated fluid power packages and subsystems used in hydraulic systems worldwide. The company operates through two segments, Hydraulics and Electronics. Its screw-in hydraulic cartridge valves and manifolds control force, speed, and motion as integral components in fluid power systems. The company offers various screw-in hydraulic cartridge valves, including electrically actuated and non-electrically actuated products; electro-hydraulics; manifolds that are machined to create threaded cavities and channels; and integrated package solutions, which consists of multiple cartridge valves assembled into a custom designed manifolds for industrial and mobile hydraulics markets under the Sun Hydraulics brand name. It also designs and manufactures electronic control, display, and instrumentation solutions for recreational and off-highway vehicles, and stationary and power generation equipment under the Enovation Controls, Murphy, and Zero Off brand names; and digital and analog electronic controller products for the fluid power industry under the HCT brand name. The company sells its hydraulic products primarily through independent fluid power channel partners, as well as directly to original equipment manufacturer customers and other companies in the hydraulics industry; and electronic products to original equipment manufacturer customers. Sun Hydraulics Corporation was founded in 1970 and is headquartered in Sarasota, Florida.
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