Graham (NYSE:GHM) & TOMI Environmental Solutions (NASDAQ:TOMZ) Critical Contrast

Graham (NYSE:GHM) and TOMI Environmental Solutions (NASDAQ:TOMZ) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk and Volatility

Graham has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, TOMI Environmental Solutions has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.

Profitability

This table compares Graham and TOMI Environmental Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graham	4.53%	11.09%	5.17%
TOMI Environmental Solutions	-49.77%	-326.81%	-44.61%

Earnings and Valuation

This table compares Graham and TOMI Environmental Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graham	$261.15 million	3.08	$12.50 million	$1.04	65.92
TOMI Environmental Solutions	$5.64 million	2.06	-$3.75 million	($0.50)	-2.85

Graham has higher revenue and earnings than TOMI Environmental Solutions. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Graham and TOMI Environmental Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graham	0	2	3	0	2.60
TOMI Environmental Solutions	1	0	1	0	2.00

Graham currently has a consensus price target of $123.33, suggesting a potential upside of 79.90%. TOMI Environmental Solutions has a consensus price target of $7.00, suggesting a potential upside of 391.23%. Given TOMI Environmental Solutions’ higher probable upside, analysts plainly believe TOMI Environmental Solutions is more favorable than Graham.

Insider & Institutional Ownership

69.5% of Graham shares are held by institutional investors. Comparatively, 4.8% of TOMI Environmental Solutions shares are held by institutional investors. 2.4% of Graham shares are held by insiders. Comparatively, 20.2% of TOMI Environmental Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Graham beats TOMI Environmental Solutions on 11 of the 14 factors compared between the two stocks.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.