Colfax (CFX) versus Gorman-Rupp (GRC) Head to Head Analysis

Gorman-Rupp (NYSE: GRC) and Colfax (NYSE:CFX) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation and Earnings

This table compares Gorman-Rupp and Colfax’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gorman-Rupp $382.07 million 2.20 $24.88 million $0.90 35.81
Colfax $3.65 billion 1.26 $128.11 million $1.24 30.10

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gorman-Rupp and Colfax, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gorman-Rupp 0 0 0 0 N/A
Colfax 1 5 8 0 2.50

Colfax has a consensus price target of $46.33, indicating a potential upside of 24.12%. Given Colfax’s higher possible upside, analysts clearly believe Colfax is more favorable than Gorman-Rupp.

Profitability

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

Net Margins Return on Equity Return on Assets
Gorman-Rupp 6.25% 9.72% 7.75%
Colfax 4.89% 6.26% 3.13%

Volatility and Risk

Gorman-Rupp has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Colfax has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Insider and Institutional Ownership

52.8% of Gorman-Rupp shares are held by institutional investors. Comparatively, 74.9% of Colfax shares are held by institutional investors. 12.4% of Gorman-Rupp shares are held by company insiders. Comparatively, 10.6% of Colfax shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Gorman-Rupp pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. Colfax does not pay a dividend. Gorman-Rupp pays out 55.6% of its earnings in the form of a dividend. Colfax has raised its dividend for 44 consecutive years.

Gorman-Rupp Company Profile

The Gorman-Rupp Company designs, manufactures and sells pumps and pump systems. The Company offers its products for use in dewatering; petroleum original equipment; agriculture; fire protection; heating, ventilating and air conditioning; military, and other liquid-handling applications. The Company operates in the manufacture and international sale of pumps and pump systems segment. The Company produces various types of pumps, which 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. Its larger pumps are sold for use in the construction, industrial, water and wastewater handling fields; for flood control; for improving low residential water pressure, and for pumping refined petroleum products, including the ground refueling of aircraft, and for various agricultural purposes.

Colfax Company Profile

Colfax Corporation is an industrial manufacturing and engineering company. The Company provides gas and fluid handling and fabrication technology products and services to customers around the world. The Company’s segments include Gas and Fluid Handling, and Fabrication Technology. The Gas and Fluid Handling segment supplies a range of gas and fluid handling products, including heavy-duty centrifugal and axial fans, rotary heat exchangers, gas compressors, pumps and certain related products, as well as aftermarket and lubrication-related services, which serves customers in the power generation, oil, gas and petrochemical, mining, marine (including defense) and general industrial and other end markets. The Fabrication Technology segment supplies welding equipment and consumables, cutting equipment and consumables, and automated welding and cutting systems. It formulates, develops, manufactures and supplies consumable products and equipment.

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