CLARCOR (NYSE: CLC) and Woodward (NASDAQ:WWD) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Institutional & Insider Ownership
86.9% of CLARCOR shares are owned by institutional investors. Comparatively, 72.6% of Woodward shares are owned by institutional investors. 3.0% of CLARCOR shares are owned by company insiders. Comparatively, 6.2% of Woodward shares 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.
This is a summary of current ratings for CLARCOR and Woodward, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Woodward has a consensus target price of $77.71, indicating a potential upside of 8.51%.
This table compares CLARCOR and Woodward’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares CLARCOR and Woodward’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Woodward||$2.10 billion||2.09||$200.50 million||$2.72||26.33|
Woodward has higher revenue and earnings than CLARCOR. CLARCOR is trading at a lower price-to-earnings ratio than Woodward, indicating that it is currently the more affordable of the two stocks.
CLARCOR pays an annual dividend of $1.00 per share. Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. CLARCOR pays out 35.2% of its earnings in the form of a dividend. Woodward pays out 18.4% 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. CLARCOR has raised its dividend for 53 consecutive years. Woodward is clearly the better dividend stock, given its higher yield and lower payout ratio.
Woodward beats CLARCOR on 8 of the 12 factors compared between the two stocks.
CLARCOR Company Profile
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.
Woodward Company Profile
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
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