Analyzing Thermon Group (THR) & GrafTech International (EAF)

Thermon Group (NYSE: THR) and GrafTech International (NYSE:EAF) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

GrafTech International pays an annual dividend of $0.26 per share and has a dividend yield of 1.3%. Thermon Group does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Thermon Group 3.86% 7.46% 4.39%
GrafTech International 28.73% 72.06% 20.95%

Earnings and Valuation

This table compares Thermon Group and GrafTech International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Thermon Group $308.61 million 2.56 $11.91 million $0.99 24.52
GrafTech International $550.77 million 10.97 $7.98 million N/A N/A

Thermon Group has higher earnings, but lower revenue than GrafTech International.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Thermon Group and GrafTech International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thermon Group 1 2 3 0 2.33
GrafTech International 0 0 5 0 3.00

Thermon Group currently has a consensus price target of $26.25, suggesting a potential upside of 8.16%. GrafTech International has a consensus price target of $25.25, suggesting a potential upside of 26.31%. Given GrafTech International’s stronger consensus rating and higher probable upside, analysts plainly believe GrafTech International is more favorable than Thermon Group.

Summary

GrafTech International beats Thermon Group on 9 of the 10 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 GrafTech International

GrafTech International Ltd. researches, develops, manufactures, and sells synthetic and natural graphite and carbon based products worldwide. It offers graphite electrodes, which are components of the conductive power systems used to produce steel and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes. The company sells its products primarily through direct sales force, independent sales representatives, and distributors. The company was founded in 1886 and is headquartered in Independence, Ohio. GrafTech International Ltd. is a subsidiary of BCP IV GrafTech Holdings LP.

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