Head-To-Head Survey: Park-Ohio (PKOH) & Milacron (MCRN)

Park-Ohio (NASDAQ: PKOH) and Milacron (NYSE:MCRN) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Park-Ohio $1.28 billion 0.39 $31.70 million $2.36 16.82
Milacron $1.17 billion 1.05 $30.50 million ($0.03) -588.14

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

Risk & Volatility

Park-Ohio has a beta of 3.23, suggesting that its share price is 223% more volatile than the S&P 500. Comparatively, Milacron has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Park-Ohio 2.16% 14.79% 3.63%
Milacron -0.09% -56.93% 6.76%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Park-Ohio and Milacron, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park-Ohio 0 2 0 0 2.00
Milacron 0 0 2 0 3.00

Park-Ohio presently has a consensus target price of $37.00, indicating a potential downside of 6.80%. Milacron has a consensus target price of $22.00, indicating a potential upside of 24.65%. Given Milacron’s stronger consensus rating and higher probable upside, analysts plainly believe Milacron is more favorable than Park-Ohio.

Dividends

Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Milacron does not pay a dividend. Park-Ohio pays out 21.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

55.2% of Park-Ohio shares are held by institutional investors. 31.0% of Park-Ohio shares are held by company insiders. Comparatively, 3.4% of Milacron shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Park-Ohio beats Milacron on 10 of the 16 factors compared between the two stocks.

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.

About Milacron

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.

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