Analyzing Rexnord (RXN) and Parker-Hannifin (PH)
Parker-Hannifin (NYSE: PH) and Rexnord (NYSE:RXN) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
This is a summary of recent ratings and target prices for Parker-Hannifin and Rexnord, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parker-Hannifin currently has a consensus target price of $187.95, indicating a potential downside of 5.97%. Rexnord has a consensus target price of $27.00, indicating a potential upside of 3.93%. Given Rexnord’s stronger consensus rating and higher possible upside, analysts plainly believe Rexnord is more favorable than Parker-Hannifin.
Risk & Volatility
Parker-Hannifin has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Rexnord has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Parker-Hannifin pays an annual dividend of $2.64 per share and has a dividend yield of 1.3%. Rexnord does not pay a dividend. Parker-Hannifin pays out 33.9% of its earnings in the form of a dividend.
This table compares Parker-Hannifin and Rexnord’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
78.0% of Parker-Hannifin shares are held by institutional investors. 1.1% of Parker-Hannifin shares are held by insiders. Comparatively, 3.5% of Rexnord shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Parker-Hannifin and Rexnord’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parker-Hannifin||$12.03 billion||2.21||$983.41 million||$7.78||25.69|
|Rexnord||$1.92 billion||1.41||$74.10 million||$0.64||40.59|
Parker-Hannifin has higher revenue and earnings than Rexnord. Parker-Hannifin is trading at a lower price-to-earnings ratio than Rexnord, indicating that it is currently the more affordable of the two stocks.
Parker-Hannifin beats Rexnord on 10 of the 16 factors compared between the two stocks.
Parker-Hannifin 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.
Rexnord Company Profile
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
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