Comparing Nordson Corporation (NDSN) and Its Rivals
Nordson Corporation (NASDAQ: NDSN) is one of 18 publicly-traded companies in the “Industrial Machinery” industry, but how does it compare to its peers? We will compare Nordson Corporation to similar companies based on the strength of its valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
This is a breakdown of current ratings and target prices for Nordson Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nordson Corporation Competitors||93||396||335||25||2.34|
Nordson Corporation presently has a consensus price target of $138.00, suggesting a potential upside of 22.24%. As a group, “Industrial Machinery” companies have a potential upside of 10.30%. Given Nordson Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Nordson Corporation is more favorable than its peers.
Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. As a group, “Industrial Machinery” companies pay a dividend yield of 1.1% and pay out 34.1% of their earnings in the form of a dividend. Nordson Corporation has increased its dividend for 3 consecutive years.
Institutional & Insider Ownership
66.0% of Nordson Corporation shares are held by institutional investors. Comparatively, 63.6% of shares of all “Industrial Machinery” companies are held by institutional investors. 2.2% of Nordson Corporation shares are held by company insiders. Comparatively, 12.1% of shares of all “Industrial Machinery” companies are held 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.
Valuation and Earnings
This table compares Nordson Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Nordson Corporation||$2.00 billion||$534.78 million||22.49|
|Nordson Corporation Competitors||$696.10 million||$107.10 million||45.15|
Nordson Corporation has higher revenue and earnings than its peers. Nordson Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Nordson Corporation has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Nordson Corporation’s peers have a beta of 1.49, suggesting that their average stock price is 49% more volatile than the S&P 500.
This table compares Nordson Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nordson Corporation Competitors||-24.03%||10.43%||4.25%|
Nordson Corporation beats its peers on 10 of the 15 factors compared.
About Nordson Corporation
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.
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