Perma-Pipe International (PPIH) & Donaldson (DCI) Head to Head Comparison

Donaldson (NYSE:DCI) and Perma-Pipe International (NASDAQ:PPIH) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares Donaldson and Perma-Pipe International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Donaldson $2.73 billion 2.53 $180.30 million $2.00 27.02
Perma-Pipe International $105.25 million 0.67 -$9.97 million N/A N/A

Donaldson has higher revenue and earnings than Perma-Pipe International.

Profitability

This table compares Donaldson and Perma-Pipe International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Donaldson 6.59% 31.09% 12.84%
Perma-Pipe International -5.32% -12.02% -6.14%

Dividends

Donaldson pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. Perma-Pipe International does not pay a dividend. Donaldson pays out 38.0% of its earnings in the form of a dividend. Donaldson has raised its dividend for 33 consecutive years.

Insider and Institutional Ownership

80.9% of Donaldson shares are owned by institutional investors. Comparatively, 40.2% of Perma-Pipe International shares are owned by institutional investors. 1.4% of Donaldson shares are owned by company insiders. Comparatively, 9.9% of Perma-Pipe International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Donaldson has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Perma-Pipe International has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Donaldson and Perma-Pipe International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donaldson 0 3 3 0 2.50
Perma-Pipe International 0 0 0 0 N/A

Donaldson currently has a consensus target price of $55.67, suggesting a potential upside of 3.01%. Given Donaldson’s higher possible upside, research analysts plainly believe Donaldson is more favorable than Perma-Pipe International.

Summary

Donaldson beats Perma-Pipe International on 12 of the 14 factors compared between the two stocks.

About Donaldson

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. It operates through Engine Products and Industrial Products segments. The Engine Products segment offers replacement filters for air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, and exhaust and emissions systems. This segment sells its products to original equipment manufacturers (OEM) in the construction, mining, agriculture, aerospace, defense, and truck markets; and to independent distributors, OEM dealer networks, private label accounts, and large equipment fleets. The Industrial Products segment provides dust, fume, and mist collectors; compressed air purification systems; air filtration systems for gas turbines; polytetrafluoroethylene membrane-based products; and specialized air and gas filtration systems for applications, including hard disk drives and semi-conductor manufacturing. This segment sells its products to various dealers, distributors, OEMs of gas-fired turbines, and OEMs and end-users requiring filtration solutions and replacement filters. Donaldson Company, Inc. was founded in 1915 and is based in Minneapolis, Minnesota.

About Perma-Pipe International

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping, and leak detection and location systems. It offers various piping systems, including industrial and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products; insulated and jacketed piping systems for district heating and cooling; and coating and/or insulation of oil and gas gathering flow and long lines for oil and mineral transportation. The company sells its products in the United States, the Middle East, Canada, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was founded in 1989 and is headquartered in Niles, Illinois.

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