Barnes Group (B) & CIRCOR International (CIR) Critical Analysis

Barnes Group (NYSE: B) and CIRCOR International (NYSE:CIR) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

88.9% of Barnes Group shares are owned by institutional investors. Comparatively, 87.0% of CIRCOR International shares are owned by institutional investors. 8.5% of Barnes Group shares are owned by insiders. Comparatively, 2.8% of CIRCOR International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. CIRCOR International pays an annual dividend of $0.11 per share and has a dividend yield of 0.2%. Barnes Group pays out 19.4% of its earnings in the form of a dividend. CIRCOR International pays out 6.4% 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. Barnes Group has raised its dividend for 5 consecutive years. Barnes Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Barnes Group has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, CIRCOR International has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Valuation and Earnings

This table compares Barnes Group and CIRCOR International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barnes Group $1.44 billion 2.23 $59.41 million $2.88 21.11
CIRCOR International $661.71 million 1.52 $11.78 million $1.71 29.75

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

Profitability

This table compares Barnes Group and CIRCOR International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnes Group 4.12% 12.17% 6.70%
CIRCOR International -1.32% 6.05% 2.27%

Analyst Ratings

This is a breakdown of current ratings and target prices for Barnes Group and CIRCOR International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnes Group 0 3 3 0 2.50
CIRCOR International 1 0 4 0 2.60

Barnes Group currently has a consensus target price of $66.33, suggesting a potential upside of 9.10%. CIRCOR International has a consensus target price of $59.60, suggesting a potential upside of 17.16%. Given CIRCOR International’s stronger consensus rating and higher probable upside, analysts plainly believe CIRCOR International is more favorable than Barnes Group.

Summary

Barnes Group beats CIRCOR International on 11 of the 17 factors compared between the two stocks.

Barnes Group Company Profile

Barnes Group Inc. operates as an industrial and aerospace manufacturer, and service provider in the United States and internationally. Its Industrial segment offers precision components, products, and systems for applications serving various customers in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices, and energy. This segment also manufactures and supplies precision mechanical products, including mechanical springs, high-precision punched and fine-blanked components, and retention rings; force and motion solutions for sheet metal forming, heavy duty suspension, and other markets; and hot runner systems, mold cavity sensors and process control systems, and precision high cavitation mold for injection molding applications. The company's Aerospace segment produces fabricated and precision-machined components and assemblies for original equipment manufacturer turbine engine, airframe, and industrial gas turbine builders, as well as for the military. It also offers maintenance, repair, and overhaul services for jet engine components to turbine engine manufacturers, commercial airlines, and the military. In addition, this segment manufactures aerospace aftermarket spare parts. The company sells its products primarily through its direct sales force and distribution channels. Barnes Group Inc. was founded in 1857 and is headquartered in Bristol, Connecticut.

CIRCOR International Company Profile

CIRCOR International, Inc. designs, manufactures, and markets engineered products and sub-systems worldwide. It operates through three segments: Energy, Advanced Flow Solutions, and Fluid Handling. The Energy segment offers a range of flow control solutions and services, including valves, such as engineered trunion and floating ball valves; gate, globe, and check valves; and butterfly valves, as well as delayed coking unheading devices, and fluid catalytic converter and isolation valves. It also provides instrumentation fittings and sampling systems comprising sight glasses and gauge valves; liquid level controllers and level switches, plugs and probes pressure controllers, and pressure regulators; and pipeline pigs, quick opening closures, and pig signalers. This segment offers its products and services to end-user customers, such as oil companies; engineering, procurement, and construction (EPC) companies; and distributors through direct sales, sales representatives, and agents. The Advanced Flow Solutions segment manufactures and markets control valves, automatic recirculation valves, regulators, fluid controls, actuation systems, landing gear components, pneumatic controls, electro-mechanical controls, and other flow control products and systems. Its products and services are used by various customers in the military and defense, commercial aerospace, business and general aviation, process industries, and power generation markets. This segment serves aircraft manufacturers and tier 1 suppliers to aircraft manufacturers, power companies and their contractors, and other industrial customers. The Fluid Handling segment provides 3 and 2 screw, progressing cavity, specialty centrifugal, and gear metering pumps; multiphase pump systems; and oil mist systems, oil purifiers, and tank cleaning systems for the end-users, OEMs, defense contractors, and EPC companies. CIRCOR International, Inc. was founded in 1999 and is headquartered in Burlington, Massachusetts.

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