Financial Review: Parker-Hannifin Corporation (PH) vs. The Competition
Parker-Hannifin Corporation (NYSE: PH) is one of 57 public companies in the “Industrial Machinery & Equipment” industry, but how does it weigh in compared to its rivals? We will compare Parker-Hannifin Corporation to similar companies based on the strength of its analyst recommendations, risk, institutional ownership, dividends, valuation, earnings and profitability.
This is a breakdown of recent ratings and price targets for Parker-Hannifin Corporation and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Parker-Hannifin Corporation Competitors||292||1679||1787||19||2.41|
Parker-Hannifin Corporation currently has a consensus target price of $182.17, suggesting a potential downside of 0.24%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 3.50%. Given Parker-Hannifin Corporation’s rivals higher probable upside, analysts plainly believe Parker-Hannifin Corporation has less favorable growth aspects than its rivals.
Risk & Volatility
Parker-Hannifin Corporation has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Parker-Hannifin Corporation’s rivals have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.
This table compares Parker-Hannifin Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Parker-Hannifin Corporation Competitors||3.01%||6.68%||4.70%|
Insider & Institutional Ownership
79.5% of Parker-Hannifin Corporation shares are owned by institutional investors. Comparatively, 80.1% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 1.1% of Parker-Hannifin Corporation shares are owned by company insiders. Comparatively, 5.3% of shares of all “Industrial Machinery & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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 36.1% of their earnings in the form of a dividend. Parker-Hannifin Corporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation and Earnings
This table compares Parker-Hannifin Corporation and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Parker-Hannifin Corporation||$12.03 billion||$1.80 billion||25.26|
|Parker-Hannifin Corporation Competitors||$2.20 billion||$345.93 million||9.91|
Parker-Hannifin Corporation has higher revenue and earnings than its rivals. Parker-Hannifin Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Parker-Hannifin Corporation beats its rivals on 9 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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