Parker-Hannifin Corporation (NYSE: PH) is one of 57 public companies in the “Industrial Machinery & Equipment” industry, but how does it contrast to its competitors? We will compare Parker-Hannifin Corporation to similar businesses based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, valuation, risk and earnings.

Valuation and Earnings

This table compares Parker-Hannifin Corporation and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Parker-Hannifin Corporation $12.03 billion $1.80 billion 25.43
Parker-Hannifin Corporation Competitors $2.20 billion $345.93 million 10.63

Parker-Hannifin Corporation has higher revenue and earnings than its competitors. Parker-Hannifin Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Parker-Hannifin Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parker-Hannifin Corporation 8.18% 22.90% 8.06%
Parker-Hannifin Corporation Competitors 2.99% 6.62% 4.74%

Insider and Institutional Ownership

79.5% of Parker-Hannifin Corporation shares are owned by institutional investors. Comparatively, 79.3% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 1.1% of Parker-Hannifin Corporation shares are owned by insiders. Comparatively, 5.5% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Parker-Hannifin Corporation pays an annual dividend of $2.64 per share and has a dividend yield of 1.4%. Parker-Hannifin Corporation pays out 36.5% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.5% and pay out 36.2% of their earnings in the form of a dividend. Parker-Hannifin Corporation lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Parker-Hannifin Corporation has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Parker-Hannifin Corporation’s competitors have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Parker-Hannifin Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parker-Hannifin Corporation 0 7 14 0 2.67
Parker-Hannifin Corporation Competitors 292 1670 1773 19 2.40

Parker-Hannifin Corporation presently has a consensus target price of $182.17, indicating a potential downside of 0.93%. As a group, “Industrial Machinery & Equipment” companies have a potential downside of 0.34%. Given Parker-Hannifin Corporation’s competitors higher probable upside, analysts clearly believe Parker-Hannifin Corporation has less favorable growth aspects than its competitors.

Summary

Parker-Hannifin Corporation beats its competitors on 10 of the 15 factors compared.

About Parker-Hannifin Corporation

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.

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