Crane (CR) and Its Peers Critical Contrast

Crane (NYSE: CR) is one of 57 public companies in the “Industrial Machinery & Equipment” industry, but how does it contrast to its competitors? We will compare Crane to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Institutional & Insider Ownership

69.4% of Crane shares are owned by institutional investors. Comparatively, 80.2% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 3.1% of Crane shares are owned by company insiders. Comparatively, 5.3% of shares of all “Industrial Machinery & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Crane and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crane 0 5 7 0 2.58
Crane Competitors 290 1653 1761 19 2.41

Crane presently has a consensus target price of $74.43, suggesting a potential downside of 10.05%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 1.31%. Given Crane’s competitors higher possible upside, analysts clearly believe Crane has less favorable growth aspects than its competitors.

Dividends

Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.6%. Crane pays out 60.8% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.5% and pay out 36.6% of their earnings in the form of a dividend.

Risk and Volatility

Crane has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Crane’s competitors have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares Crane and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Crane $2.75 billion $482.00 million 38.13
Crane Competitors $2.20 billion $347.23 million 24.52

Crane has higher revenue and earnings than its competitors. Crane is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Crane and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crane 4.79% 20.57% 7.49%
Crane Competitors 1.25% 6.53% 4.50%

Summary

Crane beats its competitors on 8 of the 15 factors compared.

About Crane

Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.

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