Gorman-Rupp (NYSE:GRC) versus Omnitek Engineering (OTCMKTS:OMTK) Head-To-Head Review

Gorman-Rupp (NYSE:GRC) and Omnitek Engineering (OTCMKTS:OMTK) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

59.3% of Gorman-Rupp shares are held by institutional investors. 11.3% of Gorman-Rupp shares are held by company insiders. Comparatively, 45.5% of Omnitek Engineering 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 Gorman-Rupp and Omnitek Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gorman-Rupp	7.41%	13.49%	6.10%
Omnitek Engineering	18.80%	-22.26%	28.98%

Volatility & Risk

Gorman-Rupp has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Omnitek Engineering has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Gorman-Rupp and Omnitek Engineering, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gorman-Rupp	0	0	1	0	3.00
Omnitek Engineering	0	0	0	0	0.00

Valuation & Earnings

This table compares Gorman-Rupp and Omnitek Engineering”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gorman-Rupp	$659.67 million	2.08	$40.12 million	$1.91	27.35
Omnitek Engineering	$1.02 million	0.27	-$170,000.00	$0.02	0.63

Gorman-Rupp has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering is trading at a lower price-to-earnings ratio than Gorman-Rupp, indicating that it is currently the more affordable of the two stocks.

Summary

Gorman-Rupp beats Omnitek Engineering on 10 of the 13 factors compared between the two stocks.

About Gorman-Rupp

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.