Parker-Hannifin Corporation (NYSE: PH) and Milacron Holdings Corp. (NYSE:MCRN) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Profitability

This table compares Parker-Hannifin Corporation and Milacron Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parker-Hannifin Corporation 8.18% 22.90% 8.06%
Milacron Holdings Corp. -0.57% -53.40% 6.51%

Analyst Ratings

This is a summary of current ratings and target prices for Parker-Hannifin Corporation and Milacron Holdings Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parker-Hannifin Corporation 0 3 14 0 2.82
Milacron Holdings Corp. 0 0 2 0 3.00

Parker-Hannifin Corporation presently has a consensus target price of $167.93, suggesting a potential upside of 6.95%. Milacron Holdings Corp. has a consensus target price of $22.00, suggesting a potential upside of 38.71%. Given Milacron Holdings Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Milacron Holdings Corp. is more favorable than Parker-Hannifin Corporation.

Dividends

Parker-Hannifin Corporation pays an annual dividend of $2.64 per share and has a dividend yield of 1.7%. Milacron Holdings Corp. does not pay a dividend. Parker-Hannifin Corporation pays out 36.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

80.7% of Parker-Hannifin Corporation shares are owned by institutional investors. 2.7% of Parker-Hannifin Corporation shares are owned by company insiders. Comparatively, 3.4% of Milacron Holdings Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Parker-Hannifin Corporation has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Milacron Holdings Corp. has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Parker-Hannifin Corporation and Milacron Holdings Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Parker-Hannifin Corporation $12.03 billion 1.74 $1.74 billion $7.23 21.72
Milacron Holdings Corp. $1.18 billion 0.93 $188.00 million ($0.10) -158.58

Parker-Hannifin Corporation has higher revenue and earnings than Milacron Holdings Corp.. Milacron Holdings Corp. is trading at a lower price-to-earnings ratio than Parker-Hannifin Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Parker-Hannifin Corporation beats Milacron Holdings Corp. on 12 of the 16 factors compared between the two stocks.

About Parker-Hannifin Corporation

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.

About Milacron Holdings Corp.

Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.

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