Head to Head Analysis: Milacron Holdings Corp. (MCRN) & Snap-on (SNA)
Milacron Holdings Corp. (NYSE: MCRN) and Snap-on (NYSE:SNA) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.
Insider and Institutional Ownership
93.1% of Snap-on shares are owned by institutional investors. 3.4% of Milacron Holdings Corp. shares are owned by insiders. Comparatively, 3.7% of Snap-on shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Milacron Holdings Corp. and Snap-on’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Milacron Holdings Corp.||$1.18 billion||0.96||$188.00 million||($0.10)||-164.38|
|Snap-on||$3.83 billion||2.21||$971.00 million||$9.68||15.17|
Snap-on has higher revenue and earnings than Milacron Holdings Corp.. Milacron Holdings Corp. is trading at a lower price-to-earnings ratio than Snap-on, indicating that it is currently the more affordable of the two stocks.
Snap-on pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Milacron Holdings Corp. does not pay a dividend. Snap-on pays out 29.3% of its earnings in the form of a dividend. Milacron Holdings Corp. has raised its dividend for 7 consecutive years.
This is a summary of current ratings and recommmendations for Milacron Holdings Corp. and Snap-on, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Milacron Holdings Corp.||0||0||2||0||3.00|
Milacron Holdings Corp. presently has a consensus target price of $22.00, indicating a potential upside of 33.82%. Snap-on has a consensus target price of $197.00, indicating a potential upside of 34.20%. Given Snap-on’s higher possible upside, analysts plainly believe Snap-on is more favorable than Milacron Holdings Corp..
This table compares Milacron Holdings Corp. and Snap-on’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%|
Volatility & Risk
Milacron Holdings Corp. has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Snap-on has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Snap-on beats Milacron Holdings Corp. on 13 of the 16 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.
Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.
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