Milacron Holdings Corp. (NYSE: MCRN) and Woodward (NASDAQ:WWD) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares Milacron Holdings Corp. and Woodward’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Milacron Holdings Corp. -0.57% -53.40% 6.51%
Woodward 9.67% 16.12% 7.67%

Earnings & Valuation

This table compares Milacron Holdings Corp. and Woodward’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Milacron Holdings Corp. $1.18 billion 0.92 $188.00 million ($0.10) -157.08
Woodward $2.08 billion 2.09 $342.57 million $3.17 22.35

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

Dividends

Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Milacron Holdings Corp. does not pay a dividend. Woodward pays out 15.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Milacron Holdings Corp. and Woodward, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Milacron Holdings Corp. 0 0 2 0 3.00
Woodward 0 4 5 0 2.56

Milacron Holdings Corp. presently has a consensus price target of $22.00, suggesting a potential upside of 40.04%. Woodward has a consensus price target of $74.75, suggesting a potential upside of 5.52%. Given Milacron Holdings Corp.’s stronger consensus rating and higher probable upside, equities analysts clearly believe Milacron Holdings Corp. is more favorable than Woodward.

Volatility & Risk

Milacron Holdings Corp. has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Woodward has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Institutional and Insider Ownership

71.3% of Woodward shares are owned by institutional investors. 3.4% of Milacron Holdings Corp. shares are owned by company insiders. Comparatively, 5.9% of Woodward shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Woodward beats Milacron Holdings Corp. on 12 of the 15 factors compared between the two stocks.

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.

About Woodward

Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.

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