Contrasting ARC Group WorldWide (ARCW) & Parker Hannifin (PH)

ARC Group WorldWide (NASDAQ: ARCW) and Parker Hannifin (NYSE:PH) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Earnings & Valuation

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This table compares ARC Group WorldWide and Parker Hannifin’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARC Group WorldWide $99.07 million 0.38 -$10.19 million ($0.19) -10.79
Parker Hannifin $12.03 billion 1.85 $983.41 million $8.11 20.65

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

Insider and Institutional Ownership

23.0% of ARC Group WorldWide shares are owned by institutional investors. Comparatively, 81.6% of Parker Hannifin shares are owned by institutional investors. 3.6% of ARC Group WorldWide shares are owned by company insiders. Comparatively, 1.1% of Parker Hannifin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

ARC Group WorldWide has a beta of 3.26, indicating that its share price is 226% more volatile than the S&P 500. Comparatively, Parker Hannifin has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Profitability

This table compares ARC Group WorldWide and Parker Hannifin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARC Group WorldWide -24.38% -30.37% -10.51%
Parker Hannifin 6.54% 23.15% 7.80%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ARC Group WorldWide and Parker Hannifin, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARC Group WorldWide 0 1 0 0 2.00
Parker Hannifin 0 7 8 0 2.53

ARC Group WorldWide presently has a consensus target price of $4.50, suggesting a potential upside of 119.51%. Parker Hannifin has a consensus target price of $200.53, suggesting a potential upside of 19.76%. Given ARC Group WorldWide’s higher probable upside, equities analysts clearly believe ARC Group WorldWide is more favorable than Parker Hannifin.

Dividends

Parker Hannifin pays an annual dividend of $2.64 per share and has a dividend yield of 1.6%. ARC Group WorldWide does not pay a dividend. Parker Hannifin pays out 32.6% of its earnings in the form of a dividend.

Summary

Parker Hannifin beats ARC Group WorldWide on 11 of the 15 factors compared between the two stocks.

ARC Group WorldWide Company Profile

ARC Group Worldwide, Inc. is a manufacturing company. The Company has two segments: Precision Components Group, 3DMT Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling.

Parker Hannifin Company Profile

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates in two segments, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment provides static and dynamic sealing devices; filters, systems, and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors, which control, transmit, and contain fluid; hydraulic, pneumatic, and electromechanical components and systems for builders and users of industrial and mobile machinery and equipment; and critical flow components for process instrumentation, healthcare, and ultra-high-purity applications, as well as components for use in refrigeration and air conditioning systems, and in fluid control applications for processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment sells its products to original equipment manufacturers and their replacement markets in manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, including control actuation systems and components, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inserting systems, hydraulic systems and components, lubrication components, pneumatic control components, power conditioning and management systems, thermal management products, and wheels and brakes. This segment markets its products directly to original equipment manufacturers and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1918 and is headquartered in Cleveland, Ohio.

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