SUMITOMO HEAVY/ADR (OTCMKTS:SOHVY) and Milacron (NYSE:MCRN) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
99.0% of Milacron shares are owned by institutional investors. 2.7% of Milacron shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings for SUMITOMO HEAVY/ADR and Milacron, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Milacron has a consensus target price of $25.50, suggesting a potential upside of 41.90%. Given Milacron’s higher probable upside, analysts clearly believe Milacron is more favorable than SUMITOMO HEAVY/ADR.
Valuation & Earnings
This table compares SUMITOMO HEAVY/ADR and Milacron’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SUMITOMO HEAVY/ADR||$7.14 billion||0.55||$324.47 million||$0.66||12.17|
|Milacron||$1.23 billion||1.03||$1.10 million||$1.69||10.63|
SUMITOMO HEAVY/ADR has higher revenue and earnings than Milacron. Milacron is trading at a lower price-to-earnings ratio than SUMITOMO HEAVY/ADR, indicating that it is currently the more affordable of the two stocks.
SUMITOMO HEAVY/ADR pays an annual dividend of $0.07 per share and has a dividend yield of 0.9%. Milacron does not pay a dividend. SUMITOMO HEAVY/ADR pays out 10.6% of its earnings in the form of a dividend.
This table compares SUMITOMO HEAVY/ADR and Milacron’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
SUMITOMO HEAVY/ADR has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Milacron has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Milacron beats SUMITOMO HEAVY/ADR on 10 of the 15 factors compared between the two stocks.
SUMITOMO HEAVY/ADR Company Profile
Sumitomo Heavy Industries, Ltd. develops, manufactures, and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Asia, Europe, and the United States. Its Machinery Components segment offers power transmission and control equipment, including drives, compact gear motors, motion control drives, and gearboxes. The company's Precision Machinery segment provides injection molding machines, transfer molding presses, cryocoolers, cryopumps, precision positioning equipment, laser annealing machines, laser drills, control systems, motion components, ion implanters, rolls for metal rolling, surface grinding machines, coolant systems, and extrusion coating lines for smartphone and semiconductor manufacturing industries. Its Construction Machinery segment offers hydraulic excavators and road machinery. The company's Industrial Machinery offers cyclotrons for positron emission tomography, positron emission tomography tracer production systems, proton therapy systems, vacuum coating equipment, forging presses, lifting magnets, steam turbines, process pumps, material handling systems, logistics systems, parking systems, non-destructive inspections, and forklifts. Its Ships segment provides oil tankers. The company's Environmental Facilities & Plants segment offers circulating fluidized bed boilers, rotary kiln-type recycling facilities, electrostatic precipitators, evaporation and crystallization facilities, spinning machines, clean room systems, dust collectors, distillation and extraction plants, reactor vessels, mixing vessels, industrial waste water treatment facilities, water and sewage treatment systems, and food and beverage manufacturing facilities. Its Others segment provides IT solutions and security services. The company was founded in 1888 and is headquartered in Tokyo, Japan.
Milacron Company Profile
Milacron Holdings Corp. manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in the United States and internationally. The company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies (Fluids). The APPT segment designs, manufactures, and sells injection molding, blow molding, and extrusion equipment; and auxiliary systems and related parts and service. This segment serves companies who serve in the consumer goods, packaging, electronics, medical, automotive, and construction end markets. The MDCS segment designs, manufactures, and sells hot runner systems, process control systems, mold bases and components, and aftermarket parts and related technologies and services for injection molding, as well as maintenance, repair, and operating supplies for plastic processing operations. This segment serves customers in the plastic processing value chain and manufacturing spectrum, including OEMs, molders, and mold makers in the consumer goods, electronics, automotive, packaging, and medical end markets. The Fluids segment manufactures and markets coolants, lubricants, process cleaners, and corrosion inhibitors that are used in metalworking processes, such as cutting, grinding, stamping, forming, and high speed machining. This segment's products are used in various markets, such as aerospace, medical, automotive, industrial components and machinery, bearings, munitions, packaging, job shops, and glass and mirror production. The company was formerly known as Milacron LLC and changed its name to Milacron Holdings Corp. in May 2012. The company was founded in 1860 and is headquartered in Cincinnati, Ohio.
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