Comparing Milacron (MCRN) and KLX (NASDAQ:KLXI)

Milacron (NYSE: MCRN) and KLX (NASDAQ:KLXI) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

99.7% of Milacron shares are owned by institutional investors. 3.4% of Milacron shares are owned by company insiders. Comparatively, 1.8% of KLX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Milacron and KLX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Milacron -0.09% -56.93% 6.76%
KLX 4.99% 5.14% 3.08%

Earnings & Valuation

This table compares Milacron and KLX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Milacron $1.17 billion 1.12 $30.50 million ($0.03) -626.79
KLX $1.53 billion 2.29 $48.20 million $1.63 42.75

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Milacron and KLX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Milacron 0 0 3 0 3.00
KLX 0 3 3 0 2.50

Milacron presently has a consensus target price of $21.67, indicating a potential upside of 15.19%. KLX has a consensus target price of $64.80, indicating a potential downside of 7.00%. Given Milacron’s stronger consensus rating and higher possible upside, research analysts plainly believe Milacron is more favorable than KLX.

Risk & Volatility

Milacron has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, KLX has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Summary

KLX beats Milacron on 8 of the 13 factors compared between the two stocks.

Milacron Company Profile

Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.

KLX Company Profile

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

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