GGG vs. IEX, FLS, XYL, SWK, PNR, CNHI, AMCR, LECO, AOS, and NDSN
Should you be buying Graco stock or one of its competitors? The main competitors of Graco include IDEX (IEX), Flowserve (FLS), Xylem (XYL), Stanley Black & Decker (SWK), Pentair (PNR), CNH Industrial (CNHI), Amcor (AMCR), Lincoln Electric (LECO), A. O. Smith (AOS), and Nordson (NDSN). These companies are all part of the "industrial products" sector.
IDEX (NYSE:IEX) and Graco (NYSE:GGG) are both large-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, media sentiment, valuation, profitability, earnings, risk, institutional ownership, community ranking and analyst recommendations.
IDEX has higher revenue and earnings than Graco. Graco is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.
Graco has a net margin of 23.15% compared to Graco's net margin of 17.89%. IDEX's return on equity of 23.01% beat Graco's return on equity.
IDEX pays an annual dividend of $2.76 per share and has a dividend yield of 1.2%. Graco pays an annual dividend of $1.02 per share and has a dividend yield of 1.2%. IDEX pays out 36.3% of its earnings in the form of a dividend. Graco pays out 35.2% 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. IDEX has raised its dividend for 14 consecutive years and Graco has raised its dividend for 28 consecutive years.
98.0% of IDEX shares are owned by institutional investors. Comparatively, 93.9% of Graco shares are owned by institutional investors. 0.5% of IDEX shares are owned by insiders. Comparatively, 2.6% of Graco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
IDEX presently has a consensus price target of $250.71, indicating a potential upside of 12.77%. Graco has a consensus price target of $88.25, indicating a potential upside of 6.30%. Given Graco's stronger consensus rating and higher possible upside, equities research analysts clearly believe IDEX is more favorable than Graco.
In the previous week, Graco had 2 more articles in the media than IDEX. MarketBeat recorded 18 mentions for Graco and 16 mentions for IDEX. Graco's average media sentiment score of 0.53 beat IDEX's score of 0.46 indicating that IDEX is being referred to more favorably in the media.
IDEX has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Graco has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.
IDEX received 75 more outperform votes than Graco when rated by MarketBeat users. However, 60.86% of users gave Graco an outperform vote while only 58.40% of users gave IDEX an outperform vote.
Summary
IDEX beats Graco on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GGG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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