Head to Head Contrast: AAON (AAON) vs. Thermon Group Holdings (THR)
Thermon Group Holdings (NYSE: THR) and AAON (NASDAQ:AAON) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitabiliy, institutional ownership and valuation.
Insider & Institutional Ownership
66.0% of AAON shares are owned by institutional investors. 1.2% of Thermon Group Holdings shares are owned by insiders. Comparatively, 22.3% of AAON shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Thermon Group Holdings has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, AAON has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Valuation and Earnings
This table compares Thermon Group Holdings and AAON’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Thermon Group Holdings||$264.13 million||2.30||$39.78 million||$0.45||41.65|
|AAON||$384.63 million||5.01||$91.19 million||$0.96||38.13|
AAON has higher revenue and earnings than Thermon Group Holdings. AAON is trading at a lower price-to-earnings ratio than Thermon Group Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Thermon Group Holdings and AAON’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermon Group Holdings||5.54%||4.60%||3.11%|
This is a summary of recent ratings and recommmendations for Thermon Group Holdings and AAON, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermon Group Holdings||0||1||2||0||2.67|
Thermon Group Holdings currently has a consensus price target of $21.00, suggesting a potential upside of 12.06%. AAON has a consensus price target of $30.00, suggesting a potential downside of 18.03%. Given Thermon Group Holdings’ higher possible upside, analysts plainly believe Thermon Group Holdings is more favorable than AAON.
AAON pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Thermon Group Holdings does not pay a dividend. AAON pays out 27.1% of its earnings in the form of a dividend.
AAON beats Thermon Group Holdings on 11 of the 16 factors compared between the two stocks.
Thermon Group Holdings Company Profile
Thermon Group Holdings, Inc. is a provider of engineered thermal solutions for process industries. The Company operates through four segments based on four geographic countries or regions: United States, Canada, Europe and Asia. Its product portfolio includes self-regulating and power limiting heating cables, which change heat output as pipe temperature changes, as well as constant wattage heating cables; mineral insulated (MI) cable; skin effect trace heater; heat traced tube bundles for environmental gas sampling systems; 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; turnkey solutions that provide solutions for heat tracing, including design, optimization, installation and ongoing maintenance; products and services, such as heating, sensing, monitoring, controlling and calibration tools, and temporary electric power distribution and lighting products.
AAON Company Profile
AAON, Inc. is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. Its products serve the commercial and industrial new construction and replacement markets. Its rooftop and condensing unit markets consist of units installed on commercial or industrial structures of less than 10 stories in height. Its air handling units, self-contained units, geothermal/water-source heat pumps, chillers, packaged outdoor mechanical rooms and coils are applicable to all sizes of commercial and industrial buildings. The replacement market consists of products installed to replace existing units/components that are worn or damaged.
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