Critical Comparison: Park-Ohio (PKOH) & SPX FLOW (FLOW)
Park-Ohio (NASDAQ: PKOH) and SPX FLOW (NYSE:FLOW) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
55.9% of Park-Ohio shares are owned by institutional investors. Comparatively, 85.8% of SPX FLOW shares are owned by institutional investors. 31.0% of Park-Ohio shares are owned by company insiders. Comparatively, 3.0% of SPX FLOW shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Park-Ohio and SPX FLOW, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Park-Ohio presently has a consensus price target of $37.00, suggesting a potential downside of 11.38%. SPX FLOW has a consensus price target of $38.00, suggesting a potential downside of 17.37%. Given Park-Ohio’s higher possible upside, research analysts plainly believe Park-Ohio is more favorable than SPX FLOW.
Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. SPX FLOW does not pay a dividend. Park-Ohio pays out 21.2% of its earnings in the form of a dividend.
Risk & Volatility
Park-Ohio has a beta of 3.47, suggesting that its stock price is 247% more volatile than the S&P 500. Comparatively, SPX FLOW has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.
Earnings and Valuation
This table compares Park-Ohio and SPX FLOW’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Park-Ohio||$1.28 billion||0.41||$31.70 million||$2.36||17.69|
|SPX FLOW||$2.00 billion||0.98||-$381.80 million||$0.52||88.44|
Park-Ohio has higher earnings, but lower revenue than SPX FLOW. Park-Ohio is trading at a lower price-to-earnings ratio than SPX FLOW, indicating that it is currently the more affordable of the two stocks.
This table compares Park-Ohio and SPX FLOW’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Park-Ohio beats SPX FLOW on 9 of the 16 factors compared between the two stocks.
Park-Ohio Holdings Corp. is a diversified international company providing supply chain management outsourcing services, capital equipment used on their production lines and manufactured components used to assemble its products. The Company operates in three segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides its customers with Total Supply Management, which manages every aspect of supplying production parts and materials to its customers’ manufacturing floor, from strategic planning to program implementation. Assembly Components manufactures products oriented towards fuel efficiency and reduced emission standards. Engineered Products segment operates a group of manufacturing businesses that design and manufacture a range of products, including induction heating and melting systems, pipe threading systems, and forged and machined products. It operates through the subsidiaries of its direct subsidiary, Park-Ohio Industries, Inc.
About SPX FLOW
SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.
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