SPX FLOW (NYSE: FLOW) and Park-Ohio (NASDAQ:PKOH) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares SPX FLOW and Park-Ohio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SPX FLOW $2.00 billion 0.99 -$381.80 million $0.53 88.25
Park-Ohio $1.28 billion 0.43 $31.70 million $2.36 18.64

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

Profitability

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

Net Margins Return on Equity Return on Assets
SPX FLOW 1.17% 6.17% 1.90%
Park-Ohio 2.16% 14.79% 3.63%

Dividends

Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.1%. SPX FLOW does not pay a dividend. Park-Ohio pays out 21.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for SPX FLOW and Park-Ohio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX FLOW 2 1 3 0 2.17
Park-Ohio 0 2 0 0 2.00

SPX FLOW currently has a consensus target price of $38.00, suggesting a potential downside of 18.75%. Park-Ohio has a consensus target price of $37.00, suggesting a potential downside of 15.91%. Given Park-Ohio’s higher probable upside, analysts plainly believe Park-Ohio is more favorable than SPX FLOW.

Insider & Institutional Ownership

85.8% of SPX FLOW shares are owned by institutional investors. Comparatively, 55.9% of Park-Ohio shares are owned by institutional investors. 3.0% of SPX FLOW shares are owned by insiders. Comparatively, 31.0% of Park-Ohio shares are owned by 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.

Summary

Park-Ohio beats SPX FLOW on 8 of the 15 factors compared between the two stocks.

About SPX FLOW

SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.

About Park-Ohio

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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