Head to Head Analysis: Parker-Hannifin Corporation (NYSE:PH) and Its Rivals

Parker-Hannifin Corporation (NYSE: PH) is one of 60 publicly-traded companies in the “Industrial Machinery & Equipment” industry, but how does it weigh in compared to its competitors? We will compare Parker-Hannifin Corporation to related companies based on the strength of its risk, institutional ownership, dividends, valuation, profitability, analyst recommendations and earnings.

Dividends

Parker-Hannifin Corporation pays an annual dividend of $2.64 per share and has a dividend yield of 1.4%. Parker-Hannifin Corporation pays out 33.9% 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 35.6% of their earnings in the form of a dividend.

Institutional and Insider Ownership

77.7% of Parker-Hannifin Corporation shares are owned by institutional investors. Comparatively, 79.7% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 1.1% of Parker-Hannifin Corporation shares are owned by insiders. Comparatively, 5.6% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Parker-Hannifin Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Parker-Hannifin Corporation $12.03 billion $983.41 million 23.42
Parker-Hannifin Corporation Competitors $3.26 billion $235.13 million 446.13

Parker-Hannifin Corporation has higher revenue and earnings than its competitors. Parker-Hannifin Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings for Parker-Hannifin Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parker-Hannifin Corporation 0 7 13 0 2.65
Parker-Hannifin Corporation Competitors 300 1768 1882 20 2.41

Parker-Hannifin Corporation currently has a consensus target price of $187.28, indicating a potential upside of 2.77%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 3.49%. Given Parker-Hannifin Corporation’s competitors higher probable upside, analysts plainly believe Parker-Hannifin Corporation has less favorable growth aspects than its competitors.

Volatility & Risk

Parker-Hannifin Corporation has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Parker-Hannifin Corporation’s competitors have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Parker-Hannifin Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parker-Hannifin Corporation 8.37% 23.61% 8.13%
Parker-Hannifin Corporation Competitors 3.17% -36.27% 4.82%

Summary

Parker-Hannifin Corporation beats its competitors on 9 of the 15 factors compared.

Parker-Hannifin Corporation Company Profile

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.

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