Parker-Hannifin (NYSE: PH) and Proto Labs (NYSE:PRLB) are both mid-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Institutional & Insider Ownership
78.0% of Parker-Hannifin shares are held by institutional investors. 1.1% of Parker-Hannifin shares are held by company insiders. Comparatively, 7.8% of Proto Labs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for Parker-Hannifin and Proto Labs, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parker-Hannifin presently has a consensus price target of $187.95, indicating a potential downside of 5.53%. Proto Labs has a consensus price target of $73.67, indicating a potential downside of 26.95%. Given Parker-Hannifin’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Parker-Hannifin is more favorable than Proto Labs.
Valuation & Earnings
This table compares Parker-Hannifin and Proto Labs’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parker-Hannifin||$12.03 billion||2.20||$983.41 million||$7.79||25.54|
|Proto Labs||$298.05 million||9.02||$42.70 million||$1.75||57.63|
Parker-Hannifin has higher revenue and earnings than Proto Labs. Parker-Hannifin is trading at a lower price-to-earnings ratio than Proto Labs, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Parker-Hannifin has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Proto Labs has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
This table compares Parker-Hannifin and Proto Labs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Parker-Hannifin pays an annual dividend of $2.64 per share and has a dividend yield of 1.3%. Proto Labs does not pay a dividend. Parker-Hannifin pays out 33.9% of its earnings in the form of a dividend.
Parker-Hannifin beats Proto Labs on 10 of the 16 factors compared between the two stocks.
Parker-Hannifin Company Profile
Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.
Proto Labs Company Profile
Proto Labs, Inc. is an e-commerce driven digital manufacturer of on-demand three dimensional (3D) printed, computer numerical control (CNC) machined and injection-molded custom parts for prototyping and short-run production. The Company’s geographic segments include the United States, Europe and Japan. The Company targets its products to the product developers and engineers who use 3D computer-aided design (3D CAD) software to design products across a range of end markets. Its product lines include Injection Molding, CNC Machining and 3D Printing. Its Injection Molding product line is used for prototype, on-demand and short-run production. Its CNC Machining product line uses commercially available CNC machines to cut plastic or metal blocks into one or more custom parts. Its 3D Printing product line includes stereolithography (SL), selective laser sintering (SLS) and direct metal laser sintering (DMLS) processes. The Company also provides low-volume sheet metal fabrication services.
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