Head to Head Comparison: CLARCOR (CLC) versus Woodward (WWD)

Woodward (NASDAQ: WWD) and CLARCOR (NYSE:CLC) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Valuation and Earnings

This table compares Woodward and CLARCOR’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
CLARCOR N/A N/A N/A $2.84 N/A

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.

Analyst Recommendations

This is a summary of current ratings for Woodward and CLARCOR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodward 0 5 3 0 2.38
CLARCOR 0 0 0 0 N/A

Woodward currently has a consensus target price of $77.71, suggesting a potential upside of 8.51%.

Insider and Institutional Ownership

72.6% of Woodward shares are held by institutional investors. Comparatively, 86.9% of CLARCOR shares are held by institutional investors. 6.2% of Woodward 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 company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Woodward 8.10% 14.04% 6.95%
CLARCOR 7.71% 10.16% 6.66%

Dividends

Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. CLARCOR pays an annual dividend of $1.00 per share. Woodward pays out 18.4% 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. CLARCOR has increased its dividend for 53 consecutive years. Woodward is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Woodward beats CLARCOR on 8 of the 12 factors compared between the two stocks.

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.

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.

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