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

Dividends

Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. CLARCOR pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Barnes Group pays out 19.7% of its earnings in the form of a dividend. CLARCOR pays out 35.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Barnes Group has raised its dividend for 4 consecutive years and CLARCOR has raised its dividend for 52 consecutive years. CLARCOR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Barnes Group and CLARCOR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnes Group 0 3 3 0 2.50
CLARCOR 0 0 0 0 N/A

Barnes Group presently has a consensus target price of $65.60, indicating a potential upside of 3.99%. Given Barnes Group’s higher possible upside, research analysts clearly believe Barnes Group is more favorable than CLARCOR.

Institutional and Insider Ownership

86.4% of Barnes Group shares are held by institutional investors. Comparatively, 86.9% of CLARCOR shares are held by institutional investors. 8.5% of Barnes Group shares are held by company insiders. Comparatively, 3.0% of CLARCOR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Barnes Group and CLARCOR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnes Group 11.20% 12.44% 6.96%
CLARCOR 7.71% 10.16% 6.66%

Earnings & Valuation

This table compares Barnes Group and CLARCOR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barnes Group $1.23 billion 2.75 $135.60 million $2.84 22.21
CLARCOR N/A N/A N/A $2.84 29.23

Barnes Group has higher revenue and earnings than CLARCOR. Barnes Group is trading at a lower price-to-earnings ratio than CLARCOR, indicating that it is currently the more affordable of the two stocks.

Summary

Barnes Group beats CLARCOR on 8 of the 11 factors compared between the two stocks.

About Barnes Group

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.

About CLARCOR

CLARCOR Inc. is engaged in providing filtration products, filtration systems and services, and consumer and industrial packaging products. The Company’s segments are Engine/Mobile Filtration and Industrial/Environmental Filtration. Its Engine/Mobile Filtration segment manufactures and sells filtration products for on-road and off-road mobile and stationary applications. Its Industrial/Environmental Filtration segment manufactures and sells filtration products used in industrial and commercial processes, and in buildings and infrastructures of various types. Its liquid process filtration products include specialty industrial process liquid filters; filters for pharmaceutical processes and beverages; filtration systems, filters and coalescers for the oil and natural gas industry; filtration systems for aircraft refueling, anti-pollution, sewage treatment and water recycling; bilge water separators, and sand control filters for oil and gas drilling.

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