Barnes Group (NYSE: B) and Gardner Denver Holdings (NYSE:GDI) are both mid-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Valuation & Earnings

This table compares Barnes Group and Gardner Denver Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Barnes Group $1.34 billion 2.90 $305.46 million $2.86 25.25
Gardner Denver Holdings $2.10 billion 2.48 $214.25 million N/A N/A

Barnes Group has higher revenue, but lower earnings than Gardner Denver Holdings.

Insider and Institutional Ownership

87.5% of Barnes Group shares are held by institutional investors. Comparatively, 98.9% of Gardner Denver Holdings shares are held by institutional investors. 8.5% of Barnes Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Barnes Group and Gardner Denver Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnes Group 0 2 3 0 2.60
Gardner Denver Holdings 0 1 9 0 2.90

Barnes Group presently has a consensus target price of $65.75, indicating a potential downside of 8.96%. Gardner Denver Holdings has a consensus target price of $28.50, indicating a potential upside of 7.14%. Given Gardner Denver Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Gardner Denver Holdings is more favorable than Barnes Group.

Dividends

Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Gardner Denver Holdings does not pay a dividend. Barnes Group pays out 19.6% of its earnings in the form of a dividend. Barnes Group has raised its dividend for 4 consecutive years.

Profitability

This table compares Barnes Group and Gardner Denver Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnes Group 11.69% 13.02% 7.20%
Gardner Denver Holdings N/A N/A N/A

Summary

Barnes Group beats Gardner Denver Holdings on 8 of the 14 factors compared between the two stocks.

Barnes Group Company Profile

Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.

Gardner Denver Holdings Company Profile

Gardner Denver Holdings, Inc. is a global provider of mission-critical flow control and compression equipments and associated aftermarket parts, consumables and services. The Company operates through three business segments: Industry, Energy and Medical. Industry segment designs, manufactures, markets and services a range of air compression, vacuum and blower products. Energy segment supplies positive displacement pumps, liquid ring vacuum pumps, compressors and integrated systems, engineered fluid loading and transfer equipment and associated aftermarket parts. Medical segment designs, manufactures and supplies medical equipment, laboratory vacuum and automated liquid handling end-markets The Company’s products are sold under a range of brands namely Gardner Denver, CompAir, Nash, Emco Wheaton, Robuschi, Elmo Rietschle and Thomas.

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