CLARCOR (NYSE:CLC) & Park-Ohio (PKOH) Critical Analysis

CLARCOR (NYSE: CLC) and Park-Ohio (NASDAQ:PKOH) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

CLARCOR pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. CLARCOR pays out 35.2% of its earnings in the form of a dividend. Park-Ohio pays out 21.2% 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. CLARCOR has raised its dividend for 53 consecutive years. CLARCOR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares CLARCOR and Park-Ohio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CLARCOR N/A N/A N/A $2.84 29.23
Park-Ohio $1.28 billion 0.42 $31.70 million $2.36 18.35

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for CLARCOR and Park-Ohio, as reported by MarketBeat.

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

Park-Ohio has a consensus target price of $37.00, suggesting a potential downside of 14.55%. Given Park-Ohio’s higher probable upside, analysts plainly believe Park-Ohio is more favorable than CLARCOR.

Profitability

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

Net Margins Return on Equity Return on Assets
CLARCOR 7.71% 10.16% 6.66%
Park-Ohio 2.16% 14.79% 3.63%

Institutional & Insider Ownership

86.9% of CLARCOR shares are owned by institutional investors. Comparatively, 55.4% of Park-Ohio shares are owned by institutional investors. 3.0% of CLARCOR shares are owned by insiders. Comparatively, 31.0% of Park-Ohio shares are owned by 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

CLARCOR beats Park-Ohio on 7 of the 12 factors compared between the two stocks.

About CLARCOR

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.

About Park-Ohio

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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