Financial Review: Pall (PLL) versus Park-Ohio (PKOH)

Pall (NYSE: PLL) and Park-Ohio (NASDAQ:PKOH) are both industrial machinery & equipment – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Pall and Park-Ohio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pall 14.12% 24.23% 10.41%
Park-Ohio 2.16% 14.79% 3.63%

Analyst Ratings

This is a summary of recent recommendations and price targets for Pall and Park-Ohio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pall 0 0 0 0 N/A
Park-Ohio 0 2 0 0 2.00

Park-Ohio has a consensus price target of $37.00, indicating a potential downside of 20.00%. Given Park-Ohio’s higher possible upside, analysts clearly believe Park-Ohio is more favorable than Pall.

Valuation and Earnings

This table compares Pall and Park-Ohio’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pall N/A N/A N/A $3.56 35.71
Park-Ohio $1.28 billion 0.45 $31.70 million $2.36 19.60

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

Dividends

Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.1%. Pall does not pay a dividend. Park-Ohio pays out 21.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

55.9% of Park-Ohio shares are owned by institutional investors. 31.0% of Park-Ohio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Pall beats Park-Ohio on 6 of the 11 factors compared between the two stocks.

Pall Company Profile

Pall Corporation is a filtration, separation and purification company. The Company is a supplier of filtration, separation and purification technologies, principally made by the Company using its engineering capability and fluid management, filter media, and other fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a variety of liquids and gases. The Company serves customers through two businesses globally: Life Sciences and Industrial. The Life Sciences business group is focused on developing, manufacturing and selling products to customers in the Medical, BioPharmaceuticals and Food & Beverage markets. The Industrial business group is focused on developing, manufacturing and selling products to customers in the Process Technologies, Aerospace and Microelectronics markets.

Park-Ohio Company Profile

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.

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