PH vs. CTAS, ITW, EMR, ABBNY, GWW, JCI, FERG, ROK, XYL, and DE
Should you be buying Parker-Hannifin stock or one of its competitors? The main competitors of Parker-Hannifin include Cintas (CTAS), Illinois Tool Works (ITW), Emerson Electric (EMR), ABB (ABBNY), W.W. Grainger (GWW), Johnson Controls International (JCI), Ferguson (FERG), Rockwell Automation (ROK), Xylem (XYL), and Deere & Company (DE). These companies are all part of the "industrial products" sector.
Cintas (NASDAQ:CTAS) and Parker-Hannifin (NYSE:PH) are both large-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, community ranking, media sentiment, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Parker-Hannifin received 158 more outperform votes than Cintas when rated by MarketBeat users. Likewise, 62.95% of users gave Parker-Hannifin an outperform vote while only 60.16% of users gave Cintas an outperform vote.
63.5% of Cintas shares are held by institutional investors. Comparatively, 82.4% of Parker-Hannifin shares are held by institutional investors. 14.9% of Cintas shares are held by insiders. Comparatively, 1.0% of Parker-Hannifin shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Cintas presently has a consensus price target of $661.21, suggesting a potential downside of 0.77%. Parker-Hannifin has a consensus price target of $515.38, suggesting a potential downside of 6.34%. Given Parker-Hannifin's higher probable upside, analysts clearly believe Cintas is more favorable than Parker-Hannifin.
Cintas pays an annual dividend of $5.40 per share and has a dividend yield of 0.8%. Parker-Hannifin pays an annual dividend of $5.92 per share and has a dividend yield of 1.1%. Cintas pays out 37.3% of its earnings in the form of a dividend. Parker-Hannifin pays out 29.3% 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. Cintas has increased its dividend for 41 consecutive years and Parker-Hannifin has increased its dividend for 68 consecutive years. Parker-Hannifin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Cintas has a net margin of 15.98% compared to Cintas' net margin of 13.28%. Parker-Hannifin's return on equity of 37.19% beat Cintas' return on equity.
Parker-Hannifin has higher revenue and earnings than Cintas. Parker-Hannifin is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.
Cintas has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.
In the previous week, Cintas had 11 more articles in the media than Parker-Hannifin. MarketBeat recorded 18 mentions for Cintas and 7 mentions for Parker-Hannifin. Cintas' average media sentiment score of 1.05 beat Parker-Hannifin's score of 1.01 indicating that Parker-Hannifin is being referred to more favorably in the news media.
Summary
Parker-Hannifin beats Cintas on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PH and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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