EnPro Industries (NPO) and Nordson Corporation (NDSN) Critical Contrast
EnPro Industries (NYSE: NPO) and Nordson Corporation (NASDAQ:NDSN) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
This is a breakdown of current ratings for EnPro Industries and Nordson Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EnPro Industries currently has a consensus target price of $85.00, indicating a potential upside of 12.43%. Nordson Corporation has a consensus target price of $138.29, indicating a potential upside of 20.65%. Given Nordson Corporation’s higher possible upside, analysts clearly believe Nordson Corporation is more favorable than EnPro Industries.
Risk and Volatility
EnPro Industries has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Nordson Corporation has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Valuation and Earnings
This table compares EnPro Industries and Nordson Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EnPro Industries||$1.18 billion||1.37||$162.20 million||$0.85||88.94|
|Nordson Corporation||$2.00 billion||3.31||$548.73 million||$5.02||22.83|
Nordson Corporation has higher revenue and earnings than EnPro Industries. Nordson Corporation is trading at a lower price-to-earnings ratio than EnPro Industries, indicating that it is currently the more affordable of the two stocks.
EnPro Industries pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. EnPro Industries pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. Nordson Corporation has raised its dividend for 3 consecutive years.
This table compares EnPro Industries and Nordson Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
94.4% of EnPro Industries shares are held by institutional investors. Comparatively, 65.5% of Nordson Corporation shares are held by institutional investors. 2.6% of EnPro Industries shares are held by insiders. Comparatively, 2.2% of Nordson Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Nordson Corporation beats EnPro Industries on 12 of the 17 factors compared between the two stocks.
EnPro Industries Company Profile
EnPro Industries, Inc. is engaged in the designing, developing, manufacturing and marketing engineered industrial products. It operates through three segments. The Sealing Products segment includes three operating divisions: Garlock, which designs, manufactures and sells sealing products; Technetics, which designs, manufactures and sells metal seals and elastomeric seals, among others, and Stemco LP (Stemco), which designs, manufactures and sells heavy-duty truck wheel-end components and systems. The Engineered Products segment includes two industrial products businesses: GGB, which designs, manufactures and sells self-lubricating, non-rolling, metal polymer and engineered plastics, among others, and Compressor Products International, which designs, manufactures, sells and services components. The Power Systems segment includes Fairbanks Morse business, which designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines.
Nordson Corporation Company Profile
Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.
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