PMFG (NASDAQ: PMFG) and Donaldson (NYSE:DCI) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

77.5% of Donaldson shares are held by institutional investors. 0.9% of Donaldson shares are held 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.

Earnings and Valuation

This table compares PMFG and Donaldson’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PMFG N/A N/A N/A N/A N/A
Donaldson $2.31 billion 2.54 $402.70 million $1.74 25.76

Donaldson has higher revenue and earnings than PMFG.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PMFG and Donaldson, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PMFG 0 0 0 0 N/A
Donaldson 0 4 1 0 2.20

Donaldson has a consensus target price of $48.67, indicating a potential upside of 8.56%. Given Donaldson’s higher possible upside, analysts clearly believe Donaldson is more favorable than PMFG.

Profitability

This table compares PMFG and Donaldson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PMFG -17.71% -31.49% -16.26%
Donaldson 9.81% 28.14% 12.15%

Dividends

Donaldson pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. PMFG does not pay a dividend. Donaldson pays out 41.4% of its earnings in the form of a dividend. PMFG has raised its dividend for 32 consecutive years.

Summary

Donaldson beats PMFG on 9 of the 11 factors compared between the two stocks.

About PMFG

PMFG, Inc. is a provider of custom-engineered systems and products designed for the delivery of energy. The Company operates in two segments: Process Products and Environmental Systems. The Process Products segment produces specialized systems and products that remove contaminants from gases and liquids, reducing maintenance and extending the life of energy infrastructure. The Process Products segment also includes industrial silencing equipment to control noise pollution on a range of industrial equipment and pulsation dampeners that reduce vibration. The Environmental Systems segment designs, engineers and installs systems for combustion modification, fuel conversions and post-combustion nitrogen oxide (NOX) control for both new and existing sources. The Company’s environmental control systems are used for air pollution abatement and converting burners to accommodate alternative sources of fuel.

About Donaldson

Donaldson Company, Inc. is a manufacturer of filtration systems and replacement parts. The Company’s segments include Engine Products, Industrial Products and Corporate. The Company’s products are manufactured at approximately 44 plants around the world and through three joint ventures. The Company offers its products under the Ultra-Web, PowerCore and Donaldson brands. The Engine Products segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense and truck end-markets and to independent distributors, OEM dealer networks, private label accounts and large equipment fleets. The Industrial Products segment sells to various industrial dealers, distributors, OEMs of gas-fired turbines and OEMs and end users requiring clean air. Its products include dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines and polytetrafluoroethylene (PTFE) membrane-based products.

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