Ingersoll Rand (NYSE:IR – Get Free Report) and Atlas Copco (OTCMKTS:ATLKY – Get Free Report) are both large-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Risk & Volatility
Ingersoll Rand has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Atlas Copco has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
Dividends
Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Atlas Copco pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Ingersoll Rand pays out 5.9% of its earnings in the form of a dividend. Atlas Copco pays out 37.5% 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.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ingersoll Rand | $7.24 billion | 4.33 | $838.60 million | $1.35 | 58.70 |
| Atlas Copco | $16.72 billion | 5.15 | $2.82 billion | $0.56 | 31.56 |
Atlas Copco has higher revenue and earnings than Ingersoll Rand. Atlas Copco is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.3% of Ingersoll Rand shares are owned by institutional investors. Comparatively, 0.0% of Atlas Copco shares are owned by institutional investors. 0.6% of Ingersoll Rand 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.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Ingersoll Rand and Atlas Copco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ingersoll Rand | 0 | 7 | 4 | 0 | 2.36 |
| Atlas Copco | 1 | 2 | 3 | 0 | 2.33 |
Ingersoll Rand presently has a consensus price target of $91.44, suggesting a potential upside of 15.40%. Given Ingersoll Rand’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ingersoll Rand is more favorable than Atlas Copco.
Profitability
This table compares Ingersoll Rand and Atlas Copco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ingersoll Rand | 7.31% | 12.14% | 6.88% |
| Atlas Copco | 16.08% | 25.42% | 13.46% |
About Ingersoll Rand
Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.
About Atlas Copco
Atlas Copco AB provides compressed air and gas, vacuum, energy, dewatering and industrial pump, industrial power tool, and assembly and machine vision solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. It operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. The company offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, expanders and pumps, and medical air solutions. It also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; turbomolecular and cryogenic pumps; abatement and integrated systems; industrial assembly tools and solutions; self-pierce riveting solutions; adhesive dispensing and flow drill fastening equipment; material removal tools, and drills and other pneumatic products; machine vision solutions; construction and demolition tools; mobile compressors, generators, and energy storage systems; and industrial flow, portable power, portable flow, and portable air products, as well as specialty rental services. The company serves the semiconductor and flat panel, industrial manufacturing, civil engineering, demolition, exploration drilling, automotive, off-highway vehicles, electronics, aerospace, energy, food, pharmaceutical, textile, and other industries. Atlas Copco AB was founded in 1873 and is headquartered in Nacka, Sweden.
