Global Power Equipment Group (NASDAQ: GLPW) and Eaton Corporation, PLC (NYSE:ETN) are both industrial goods companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitabiliy.

Dividends

Eaton Corporation, PLC pays an annual dividend of $2.40 per share and has a dividend yield of 3.0%. Global Power Equipment Group does not pay a dividend. Eaton Corporation, PLC pays out 55.8% of its earnings in the form of a dividend. Eaton Corporation, PLC has raised its dividend for 7 consecutive years.

Profitability

This table compares Global Power Equipment Group and Eaton Corporation, PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Power Equipment Group 3.41% 8.49% 5.99%
Eaton Corporation, PLC 9.86% 12.82% 6.33%

Insider and Institutional Ownership

76.3% of Eaton Corporation, PLC shares are held by institutional investors. 0.8% of Eaton Corporation, PLC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Global Power Equipment Group and Eaton Corporation, PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Global Power Equipment Group $589.00 million 0.08 -$25.53 million N/A N/A
Eaton Corporation, PLC $19.78 billion 1.79 $3.21 billion $4.30 18.37

Eaton Corporation, PLC has higher revenue and earnings than Global Power Equipment Group.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Global Power Equipment Group and Eaton Corporation, PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Power Equipment Group 0 0 0 0 N/A
Eaton Corporation, PLC 1 11 7 0 2.32

Eaton Corporation, PLC has a consensus price target of $77.83, indicating a potential downside of 1.44%. Given Eaton Corporation, PLC’s higher possible upside, analysts clearly believe Eaton Corporation, PLC is more favorable than Global Power Equipment Group.

Summary

Eaton Corporation, PLC beats Global Power Equipment Group on 12 of the 13 factors compared between the two stocks.

Global Power Equipment Group Company Profile

Global Power Equipment Group Inc. is a design, engineering and manufacturing company providing an array of equipment and services to the global power infrastructure, energy and process industries. The Products segment includes two primary product categories: Mechanical Solutions, which designs, engineers and manufactures a portfolio of equipment for utility-scale natural gas turbines, and Electrical Solutions, which provides custom-configured electrical houses and generator enclosures for various industries. The Services segment provides lifecycle maintenance, repair, on-site specialty support, outage management, construction and fabrication services for the power generation, industrial, chemical/petrochemical processing, and oil and gas industries. Its products portfolio span from auxiliary equipment for gas turbines to small, high alloy parts, such as seals, shims and brackets. It also offers a range of services that have been managing plant asset value.

Eaton Corporation, PLC Company Profile

Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. On January 1, 2011, it closed the acquisition of the Tuthill Coupling Group, which is a division of the Tuthill Corporation. It has five segments: Electrical Americas and Electrical Rest of World; Hydraulics; Aerospace; Truck, and Automotive. On October 1, 2010, it acquired CopperLogic, Inc. On July 15, 2010, it acquired EMC Engineers, Inc. In May 2011, it acquired Internormen Technology Group. In August 2011, it acquired IE Power, Inc. In December 2011, it acquired E.A. Pedersen Company.

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