Critical Review: CLARCOR (NYSE:CLC) & Crane (CR)

Crane (NYSE: CR) and CLARCOR (NYSE:CLC) are both mid-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Crane and CLARCOR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crane 0 4 8 0 2.67
CLARCOR 0 0 0 0 N/A

Crane presently has a consensus target price of $97.00, suggesting a potential upside of 4.81%. Given Crane’s higher probable upside, research analysts plainly believe Crane is more favorable than CLARCOR.

Dividends

Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. CLARCOR pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Crane pays out 59.2% of its earnings in the form of a dividend. CLARCOR pays out 35.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crane has increased its dividend for 53 consecutive years. Crane is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

68.3% of Crane shares are held by institutional investors. Comparatively, 86.9% of CLARCOR shares are held by institutional investors. 3.1% of Crane shares are held by insiders. Comparatively, 3.0% of CLARCOR shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Crane and CLARCOR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crane 4.96% 20.70% 7.53%
CLARCOR 7.71% 10.16% 6.66%

Earnings & Valuation

This table compares Crane and CLARCOR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crane $2.75 billion 2.00 $122.80 million $2.23 41.50
CLARCOR N/A N/A N/A $2.84 29.23

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

Summary

Crane beats CLARCOR on 9 of the 13 factors compared between the two stocks.

Crane Company Profile

Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.

CLARCOR Company Profile

CLARCOR Inc. is engaged in providing filtration products, filtration systems and services, and consumer and industrial packaging products. The Company’s segments are Engine/Mobile Filtration and Industrial/Environmental Filtration. Its Engine/Mobile Filtration segment manufactures and sells filtration products for on-road and off-road mobile and stationary applications. Its Industrial/Environmental Filtration segment manufactures and sells filtration products used in industrial and commercial processes, and in buildings and infrastructures of various types. Its liquid process filtration products include specialty industrial process liquid filters; filters for pharmaceutical processes and beverages; filtration systems, filters and coalescers for the oil and natural gas industry; filtration systems for aircraft refueling, anti-pollution, sewage treatment and water recycling; bilge water separators, and sand control filters for oil and gas drilling.

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