EnPro Industries (NYSE: NPO) and CIRCOR International (NYSE:CIR) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitabiliy.

Volatility and Risk

EnPro Industries has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, CIRCOR International has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Institutional & Insider Ownership

94.6% of EnPro Industries shares are owned by institutional investors. Comparatively, 99.3% of CIRCOR International shares are owned by institutional investors. 2.6% of EnPro Industries shares are owned by insiders. Comparatively, 2.7% of CIRCOR International shares are owned by 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.

Earnings and Valuation

This table compares EnPro Industries and CIRCOR International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EnPro Industries $1.19 billion 1.29 $167.70 million $0.61 118.02
CIRCOR International $584.67 million 1.91 $56.38 million $0.67 100.97

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for EnPro Industries and CIRCOR International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnPro Industries 0 0 1 0 3.00
CIRCOR International 0 1 2 0 2.67

EnPro Industries presently has a consensus price target of $85.00, suggesting a potential upside of 18.07%. CIRCOR International has a consensus price target of $62.33, suggesting a potential downside of 7.86%. Given EnPro Industries’ stronger consensus rating and higher probable upside, equities research analysts plainly believe EnPro Industries is more favorable than CIRCOR International.

Profitability

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

Net Margins Return on Equity Return on Assets
EnPro Industries 1.10% 9.43% 2.25%
CIRCOR International 1.88% 7.21% 4.03%

Dividends

EnPro Industries pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. CIRCOR International pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. EnPro Industries pays out 144.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CIRCOR International pays out 22.4% of its earnings in the form of a dividend.

Summary

CIRCOR International beats EnPro Industries on 9 of the 16 factors compared between the two stocks.

About EnPro Industries

EnPro Industries, Inc. is engaged in the designing, developing, manufacturing and marketing engineered industrial products. It operates through three segments. The Sealing Products segment includes three operating divisions: Garlock, which designs, manufactures and sells sealing products; Technetics, which designs, manufactures and sells metal seals and elastomeric seals, among others, and Stemco LP (Stemco), which designs, manufactures and sells heavy-duty truck wheel-end components and systems. The Engineered Products segment includes two industrial products businesses: GGB, which designs, manufactures and sells self-lubricating, non-rolling, metal polymer and engineered plastics, among others, and Compressor Products International, which designs, manufactures, sells and services components. The Power Systems segment includes Fairbanks Morse business, which designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines.

About CIRCOR International

CIRCOR International, Inc. (CIRCOR) designs, manufactures and markets engineered products and sub-systems for markets, including oil and gas, aerospace, power and process, and industrial solutions. The Company operates through two segments: CIRCOR Energy (Energy segment (Energy)) and CIRCOR Advanced Flow Solutions (Advanced Flow Solutions segment (AFS)). Energy provides engineered integrated flow control solutions, valves and services primarily in the oil and gas end market. AFS is a flow control technology platform. Energy provides its flow control solutions and services through the brands, including Circle Seal Controls, DeltaValve, Contromatics, Dopak Sampling and others. AFS 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. As of December 31, 2016, it operated 19 manufacturing facilities.

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