Nordson Corporation (NASDAQ: NDSN) and EnPro Industries (NYSE:NPO) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares Nordson Corporation and EnPro Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordson Corporation 14.43% 33.39% 11.08%
EnPro Industries 1.56% 8.71% 2.06%

Institutional and Insider Ownership

66.4% of Nordson Corporation shares are owned by institutional investors. Comparatively, 95.6% of EnPro Industries shares are owned by institutional investors. 2.2% of Nordson Corporation shares are owned by insiders. Comparatively, 2.6% of EnPro Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Nordson Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 0.8%. EnPro Industries pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Nordson Corporation pays out 22.8% of its earnings in the form of a dividend. EnPro Industries pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnPro Industries has increased its dividend for 3 consecutive years. EnPro Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Nordson Corporation and EnPro Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nordson Corporation $1.90 billion 3.88 $497.39 million $4.74 26.99
EnPro Industries $1.18 billion 1.29 $162.20 million $0.85 83.93

Nordson Corporation has higher revenue and earnings than EnPro Industries. Nordson Corporation 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 Ratings

This is a breakdown of recent recommendations and price targets for Nordson Corporation and EnPro Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordson Corporation 0 5 6 0 2.55
EnPro Industries 0 0 2 0 3.00

Nordson Corporation currently has a consensus price target of $113.00, suggesting a potential downside of 11.68%. EnPro Industries has a consensus price target of $85.00, suggesting a potential upside of 19.15%. Given EnPro Industries’ stronger consensus rating and higher probable upside, analysts plainly believe EnPro Industries is more favorable than Nordson Corporation.

Volatility & Risk

Nordson Corporation has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, EnPro Industries has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Summary

Nordson Corporation beats EnPro Industries on 10 of the 17 factors compared between the two stocks.

Nordson Corporation Company Profile

Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.

EnPro Industries Company Profile

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.

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