Pall (NYSE: PLL) and Parker-Hannifin (NYSE:PH) are both large-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

78.0% of Parker-Hannifin shares are held by institutional investors. 1.1% of Parker-Hannifin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Pall and Parker-Hannifin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pall 0 0 0 0 N/A
Parker-Hannifin 0 7 12 0 2.63

Parker-Hannifin has a consensus price target of $192.00, indicating a potential downside of 8.59%. Given Parker-Hannifin’s higher possible upside, analysts plainly believe Parker-Hannifin is more favorable than Pall.

Profitability

This table compares Pall and Parker-Hannifin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pall 14.12% 24.23% 10.41%
Parker-Hannifin 8.37% 23.61% 8.13%

Valuation & Earnings

This table compares Pall and Parker-Hannifin’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pall N/A N/A N/A $3.56 35.71
Parker-Hannifin $12.03 billion 2.33 $983.41 million $7.79 26.96

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

Dividends

Parker-Hannifin pays an annual dividend of $2.64 per share and has a dividend yield of 1.3%. Pall does not pay a dividend. Parker-Hannifin pays out 33.9% of its earnings in the form of a dividend. Parker-Hannifin has increased its dividend for 10 consecutive years.

Summary

Parker-Hannifin beats Pall on 8 of the 13 factors compared between the two stocks.

Pall Company Profile

Pall Corporation is a filtration, separation and purification company. The Company is a supplier of filtration, separation and purification technologies, principally made by the Company using its engineering capability and fluid management, filter media, and other fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a variety of liquids and gases. The Company serves customers through two businesses globally: Life Sciences and Industrial. The Life Sciences business group is focused on developing, manufacturing and selling products to customers in the Medical, BioPharmaceuticals and Food & Beverage markets. The Industrial business group is focused on developing, manufacturing and selling products to customers in the Process Technologies, Aerospace and Microelectronics markets.

Parker-Hannifin Company Profile

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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