Profire Energy (PFIE) & Ingersoll-Rand (IR) Critical Survey

Profire Energy (NASDAQ: PFIE) and Ingersoll-Rand (NYSE:IR) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Dividends

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Ingersoll-Rand pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Profire Energy does not pay a dividend. Ingersoll-Rand pays out 39.9% of its earnings in the form of a dividend. Ingersoll-Rand has raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Profire Energy and Ingersoll-Rand’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Profire Energy $38.29 million 4.17 $4.44 million $0.09 36.33
Ingersoll-Rand $14.20 billion 1.48 $1.30 billion $4.51 18.65

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

Analyst Ratings

This is a summary of recent recommendations for Profire Energy and Ingersoll-Rand, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Profire Energy 0 0 2 0 3.00
Ingersoll-Rand 0 7 8 0 2.53

Profire Energy presently has a consensus target price of $2.25, suggesting a potential downside of 31.19%. Ingersoll-Rand has a consensus target price of $103.33, suggesting a potential upside of 22.83%. Given Ingersoll-Rand’s higher probable upside, analysts plainly believe Ingersoll-Rand is more favorable than Profire Energy.

Institutional & Insider Ownership

20.4% of Profire Energy shares are owned by institutional investors. Comparatively, 80.8% of Ingersoll-Rand shares are owned by institutional investors. 58.7% of Profire Energy shares are owned by insiders. Comparatively, 0.6% of Ingersoll-Rand shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Profire Energy and Ingersoll-Rand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Profire Energy 11.62% 10.43% 9.68%
Ingersoll-Rand 9.17% 16.91% 6.56%

Volatility & Risk

Profire Energy has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Ingersoll-Rand has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Summary

Ingersoll-Rand beats Profire Energy on 9 of the 17 factors compared between the two stocks.

About Profire Energy

Profire Energy, Inc. is an oilfield technology company. The Company is primarily engaged in the business of developing combustion management technologies for the oil and gas industry. It specializes in the creation of burner-management systems, used on a range of oilfield natural-draft fire tube vessels. It offers burner-management systems, which help to ignite, monitor and manage the burner flame. Its solution, the PF3100, helps manage and synchronize custom applications helping oilfield producers meet deadlines through an off-the-shelf solution with dynamic customization. It also sells complementary oilfield products. Such products help manage fuel flow (such as valves and fuel trains), meter air flow (such as airplates), generate power on-site (such as solar packages), ignite and direct flame (such as flare stack igniter and nozzles), and other functions. In addition to the burner-management systems and complementary technologies, it also offers chemical-management systems.

About Ingersoll-Rand

Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.

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