Analyzing Thermon Group (THR) and Woodward (WWD)

Thermon Group (NYSE: THR) and Woodward (NASDAQ:WWD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Volatility & Risk

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Thermon Group has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Woodward has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Thermon Group and Woodward’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thermon Group 3.33% 5.16% 3.27%
Woodward 8.10% 14.04% 6.95%

Earnings & Valuation

This table compares Thermon Group and Woodward’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Thermon Group $264.13 million 2.75 $14.64 million $0.43 52.07
Woodward $2.10 billion 2.08 $200.50 million $3.16 22.49

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

Dividends

Woodward pays an annual dividend of $0.57 per share and has a dividend yield of 0.8%. Thermon Group does not pay a dividend. Woodward pays out 18.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Thermon Group and Woodward, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thermon Group 1 1 3 0 2.40
Woodward 0 6 3 0 2.33

Thermon Group presently has a consensus price target of $25.33, indicating a potential upside of 13.15%. Woodward has a consensus price target of $79.00, indicating a potential upside of 11.14%. Given Thermon Group’s stronger consensus rating and higher possible upside, analysts clearly believe Thermon Group is more favorable than Woodward.

Insider & Institutional Ownership

74.5% of Woodward shares are owned by institutional investors. 1.2% of Thermon Group shares are owned by insiders. Comparatively, 6.2% of Woodward shares are owned by 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

Woodward beats Thermon Group on 10 of the 15 factors compared between the two stocks.

About Thermon Group

Thermon Group Holdings, Inc. provides thermal engineered industrial process heating solutions for process industries in the United States, Canada, Europe, and Asia. Its products include various electric heat tracing cables, steam tracing components, tubing bundles, and instrument and control products, as well as complementary product lines. The company offers self-regulating and power limiting heating cables, which automatically increase or decrease heat output as pipe temperature changes, as well as constant wattage heating cables; mineral insulated cables for generating high temperatures used in harsh environments; skin effect trace heaters, which could heat lines up to 15 miles long from a single power point; and heat traced tube bundles for environmental gas sampling systems. It also provides heat transfer compounds and steam tracers for steam tracing solutions; control and monitoring systems for electric tracing of pipes, tanks, hoppers, and instrument sampling systems; hopper heating modules, which are self-contained heaters for use in cement plants and fossil fuel power facilities; and turnkey solutions that provide solutions for heat tracing comprising design, optimization, planning, product supply, engineering services, system integration, installation, commissioning, and maintenance. In addition, the company offers heating, sensing, monitoring, controlling, and calibration tools; and equipment for temporary electric power distribution and lighting products used in energy infrastructure construction projects and maintenance/turnaround projects. The company offers its solutions to the oil and gas, chemical processing, and power generation markets through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. is headquartered in San Marcos, Texas.

About Woodward

Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.

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