Milacron (NYSE: MCRN) and Energy Recovery (NASDAQ:ERII) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.
Volatility & Risk
Milacron has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 5.33, suggesting that its stock price is 433% more volatile than the S&P 500.
Institutional and Insider Ownership
37.5% of Energy Recovery shares are held by institutional investors. 2.7% of Milacron shares are held by company insiders. Comparatively, 23.6% of Energy Recovery shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Milacron and Energy Recovery’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Milacron and Energy Recovery, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Milacron currently has a consensus target price of $23.50, suggesting a potential upside of 16.51%. Energy Recovery has a consensus target price of $15.83, suggesting a potential upside of 80.75%. Given Energy Recovery’s higher probable upside, analysts clearly believe Energy Recovery is more favorable than Milacron.
Valuation & Earnings
This table compares Milacron and Energy Recovery’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Milacron||$1.23 billion||1.15||$1.10 million||$1.69||11.93|
|Energy Recovery||$63.16 million||7.42||$12.35 million||$0.07||125.14|
Energy Recovery has lower revenue, but higher earnings than Milacron. Milacron is trading at a lower price-to-earnings ratio than Energy Recovery, indicating that it is currently the more affordable of the two stocks.
Energy Recovery beats Milacron on 10 of the 13 factors compared between the two stocks.
Milacron Company Profile
Milacron Holdings Corp. manufactures, distributes, and services engineered and customized systems within the plastic technology and processing industry in the United States and internationally. The company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies (Fluids). The APPT segment designs, manufactures, and sells injection molding, blow molding, and extrusion equipment; and auxiliary systems and related parts and service. This segment serves companies who serve in the consumer goods, packaging, electronics, medical, automotive, and construction end markets. The MDCS segment designs, manufactures, and sells hot runner systems, process control systems, mold bases and components, and aftermarket parts and related technologies and services for injection molding, as well as maintenance, repair, and operating supplies for plastic processing operations. This segment serves customers in the plastic processing value chain and manufacturing spectrum, including OEMs, molders, and mold makers in the consumer goods, electronics, automotive, packaging, and medical end markets. The Fluids segment manufactures and markets coolants, lubricants, process cleaners, and corrosion inhibitors that are used in metalworking processes, such as cutting, grinding, stamping, forming, and high speed machining. This segment's products are used in various markets, such as aerospace, medical, automotive, industrial components and machinery, bearings, munitions, packaging, job shops, and glass and mirror production. The company was formerly known as Milacron LLC and changed its name to Milacron Holdings Corp. in May 2012. The company was founded in 1860 and is headquartered in Cincinnati, Ohio.
Energy Recovery Company Profile
Energy Recovery, Inc. provides energy solutions to industrial fluid flow markets under the ERI, PX, Pressure Exchanger, PX Pressure Exchanger, AT, AquaBold, VorTeq, MTeq, IsoBoost, and IsoGen names worldwide. The company operates through Water and Oil & Gas segments. It offers pressure exchanger energy recovery devices for water desalination plants; hydraulic turbochargers for low-pressure brackish, high-pressure seawater reverse osmosis systems, and other water treatment applications; and high-pressure and circulation pumps for low and high-pressure reverse osmosis systems. The company also provides VorTeq solutions for hydraulic fracturing applications; MTeq solutions for mud pumping applications; IsoBoost systems, such as hydraulic turbo chargers, and related controls and automation systems; and IsoGen systems, including hydraulic turbines, and related controls and automation systems. It serves engineering, procurement, and construction (EPC) firms that design and build large desalination plants; original equipment manufacturers; oil companies; exploration and production companies; oilfield service companies; and EPC firms, which design and build oil and gas processing plants. The company markets its products through its direct sales channels and independent sales agents. Energy Recovery, Inc. was founded in 1992 and is headquartered in San Leandro, California.
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