Analyzing Omnitek Engineering (OTCMKTS:OMTK) and Gorman-Rupp (NYSE:GRC)

Omnitek Engineering (OTCMKTS:OMTK) and Gorman-Rupp (NYSE:GRC) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

59.3% of Gorman-Rupp shares are owned by institutional investors. 45.5% of Omnitek Engineering shares are owned by company insiders. Comparatively, 11.3% of Gorman-Rupp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Omnitek Engineering has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500. Comparatively, Gorman-Rupp has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares Omnitek Engineering and Gorman-Rupp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	18.80%	-22.26%	28.98%
Gorman-Rupp	7.41%	13.49%	6.10%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Omnitek Engineering and Gorman-Rupp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Gorman-Rupp	0	0	1	0	3.00

Earnings & Valuation

This table compares Omnitek Engineering and Gorman-Rupp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.27	-$170,000.00	$0.02	0.63
Gorman-Rupp	$659.67 million	2.06	$40.12 million	$1.91	27.03

Gorman-Rupp has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering is trading at a lower price-to-earnings ratio than Gorman-Rupp, indicating that it is currently the more affordable of the two stocks.

Summary

Gorman-Rupp beats Omnitek Engineering on 10 of the 13 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

About Gorman-Rupp

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.