Financial Analysis: TriMas (NASDAQ:TRS) versus Park-Ohio (PKOH)

TriMas (NASDAQ: TRS) and Park-Ohio (NASDAQ:PKOH) are both small-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Institutional & Insider Ownership

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99.6% of TriMas shares are held by institutional investors. Comparatively, 55.3% of Park-Ohio shares are held by institutional investors. 1.1% of TriMas shares are held by insiders. Comparatively, 31.2% of Park-Ohio shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares TriMas and Park-Ohio’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TriMas $817.74 million 1.54 $30.96 million $1.40 19.64
Park-Ohio $1.41 billion 0.36 $28.60 million $3.23 12.34

TriMas has higher earnings, but lower revenue than Park-Ohio. Park-Ohio is trading at a lower price-to-earnings ratio than TriMas, indicating that it is currently the more affordable of the two stocks.

Dividends

Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. TriMas does not pay a dividend. Park-Ohio pays out 15.5% of its earnings in the form of a dividend.

Risk & Volatility

TriMas has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Park-Ohio has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TriMas and Park-Ohio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriMas 0 3 2 0 2.40
Park-Ohio 0 2 0 0 2.00

TriMas currently has a consensus target price of $29.00, indicating a potential upside of 5.45%. Park-Ohio has a consensus target price of $37.00, indicating a potential downside of 7.15%. Given TriMas’ stronger consensus rating and higher possible upside, equities research analysts plainly believe TriMas is more favorable than Park-Ohio.

Profitability

This table compares TriMas and Park-Ohio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriMas 3.79% 12.09% 6.14%
Park-Ohio 2.02% 15.04% 3.74%

Summary

TriMas beats Park-Ohio on 10 of the 16 factors compared between the two stocks.

TriMas Company Profile

TriMas Corporation manufactures and sells products for consumer products, aerospace, industrial, petrochemical, refinery, and oil and gas markets worldwide. The company operates through four segments: Packaging, Aerospace, Energy, and Engineered Components. The Packaging segment designs and manufactures industrial closure products, including steel drum and plastic enclosures, plastic drum closures, and plastic pail dispensers and plugs; and specialty dispensing products, such as foamers, lotion pumps, fine mist sprayers, and other packaging solutions for the cosmetic, personal care, and household product markets, as well as specialty plastic closures for bottles and jars, and dispensing pumps for the food and beverage markets. This segment primarily operates under the Rieke name. The Aerospace segment offers fasteners, collars, blind bolts, rivets, and precision-machined components for use in commercial, maintenance and repair (MRO), and military aerospace applications and platforms to OEMs, supply chain distributors, MRO/aftermarket providers, and tier one suppliers. This segment offers its products under the Monogram Aerospace Fasteners, Allfast Fastening Systems, Mac Fasteners, and Martinic Engineering brands. The Energy segment provides metallic and nonmetallic gaskets, bolts, fasteners, and specialty products for the petrochemical, petroleum refining, oil field, water/waste water treatment, and other industrial markets under the Lamons brand. The Engineered Components segment offers steel cylinders for use in the transportation, storage, and dispensing of compressed gases under the Norris Cylinder name; and various natural gas powered wellhead engines, compressors, and replacement parts for use in oil and natural gas production, and other industrial and commercial markets under the Arrow Engine name. It sells its products through a direct sales force, third-party agents, distributors, and licensees. The company is based in Bloomfield Hills, Michigan.

Park-Ohio Company Profile

Park-Ohio Holdings Corp., through its subsidiaries, provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Asia, Europe, Canada, Mexico, and internationally. The company's Supply Technologies segment offers Total Supply Management solution, including engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, including valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products. This segment also engineers and manufactures precision cold formed and cold extruded fasteners and other products, including locknuts, SPAC nuts, and wheel hardware. The company's Assembly Components segment manufactures aluminum products, high pressure direct fuel injection fuel rails and pipes, and fuel filler pipes, as well as flexible multi-layer plastic and rubber assemblies; and turbo charging hoses and turbo coolant hoses. This segment also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly; and supplies aluminum components. The company's Engineered Products segment designs and manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products primarily for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; provides field services; and offers aerospace and defense structural components, and railcar center plates and draft lugs. The company was founded in 1961 and is headquartered in Cleveland, Ohio.

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