Head-To-Head Survey: Woodward (WWD) versus Park-Ohio Holdings Corp. (PKOH)
Woodward (NASDAQ: WWD) and Park-Ohio Holdings Corp. (NASDAQ:PKOH) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
Risk and Volatility
Woodward has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Park-Ohio Holdings Corp. has a beta of 3.47, indicating that its share price is 247% more volatile than the S&P 500.
This table compares Woodward and Park-Ohio Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Park-Ohio Holdings Corp.||2.50%||16.90%||4.14%|
Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Park-Ohio Holdings Corp. pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Woodward pays out 15.8% of its earnings in the form of a dividend. Park-Ohio Holdings Corp. pays out 18.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Earnings and Valuation
This table compares Woodward and Park-Ohio Holdings Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Woodward||$2.08 billion||2.05||$342.57 million||$3.17||21.91|
|Park-Ohio Holdings Corp.||$1.31 billion||0.36||$111.10 million||$2.66||14.72|
Woodward has higher revenue and earnings than Park-Ohio Holdings Corp.. Park-Ohio Holdings Corp. is trading at a lower price-to-earnings ratio than Woodward, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Woodward and Park-Ohio Holdings Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Park-Ohio Holdings Corp.||0||0||2||0||3.00|
Woodward currently has a consensus price target of $74.75, indicating a potential upside of 7.60%. Park-Ohio Holdings Corp. has a consensus price target of $45.67, indicating a potential upside of 16.65%. Given Park-Ohio Holdings Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe Park-Ohio Holdings Corp. is more favorable than Woodward.
Insider & Institutional Ownership
71.1% of Woodward shares are held by institutional investors. Comparatively, 55.9% of Park-Ohio Holdings Corp. shares are held by institutional investors. 5.9% of Woodward shares are held by company insiders. Comparatively, 31.0% of Park-Ohio Holdings Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Woodward beats Park-Ohio Holdings Corp. on 10 of the 16 factors compared between the two stocks.
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
About Park-Ohio Holdings Corp.
Park-Ohio Holdings Corp. is a diversified international company providing supply chain management outsourcing services, capital equipment used on their production lines and manufactured components used to assemble its products. The Company operates in three segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides its customers with Total Supply Management, which manages every aspect of supplying production parts and materials to its customers’ manufacturing floor, from strategic planning to program implementation. Assembly Components manufactures products oriented towards fuel efficiency and reduced emission standards. Engineered Products segment operates a group of manufacturing businesses that design and manufacture a range of products, including induction heating and melting systems, pipe threading systems, and forged and machined products. It operates through the subsidiaries of its direct subsidiary, Park-Ohio Industries, Inc.
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