Newport Corp (NASDAQ: NEWP) and W.W. Grainger (NYSE:GWW) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Newport Corp and W.W. Grainger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newport Corp 0 0 0 0 N/A
W.W. Grainger 4 10 1 0 1.80

W.W. Grainger has a consensus price target of $190.50, indicating a potential downside of 4.64%. Given W.W. Grainger’s higher possible upside, analysts clearly believe W.W. Grainger is more favorable than Newport Corp.

Dividends

W.W. Grainger pays an annual dividend of $5.12 per share and has a dividend yield of 2.6%. Newport Corp does not pay a dividend. W.W. Grainger pays out 61.0% of its earnings in the form of a dividend. W.W. Grainger has raised its dividend for 45 consecutive years.

Institutional and Insider Ownership

82.0% of W.W. Grainger shares are owned by institutional investors. 9.6% of W.W. Grainger shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Newport Corp and W.W. Grainger’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Newport Corp N/A N/A N/A N/A N/A
W.W. Grainger $10.26 billion 1.11 $1.34 billion $8.40 23.78

W.W. Grainger has higher revenue and earnings than Newport Corp.

Profitability

This table compares Newport Corp and W.W. Grainger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newport Corp 6.37% 10.63% 6.60%
W.W. Grainger 4.83% 34.25% 11.20%

Summary

W.W. Grainger beats Newport Corp on 9 of the 11 factors compared between the two stocks.

About Newport Corp

Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.

About W.W. Grainger

W.W. Grainger, Inc. (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. The Company operates through two segments, which include the United States and Canada. The Company’s business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company’s other businesses also include Zoro Tools, Inc. (Zoro), the single channel online business in the United States, MonotaRO Co. (MonotaRO) in Japan, and operations in Europe, Asia and Latin America.

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