GGG vs. IEX, FLS, XYL, PNR, AMCR, SWK, CNHI, LECO, NDSN, and AOS
Should you be buying Graco stock or one of its competitors? The main competitors of Graco include IDEX (IEX), Flowserve (FLS), Xylem (XYL), Pentair (PNR), Amcor (AMCR), Stanley Black & Decker (SWK), CNH Industrial (CNHI), Lincoln Electric (LECO), Nordson (NDSN), and A. O. Smith (AOS). 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 superior investment? We will contrast the two companies based on the strength of their community ranking, profitability, analyst recommendations, media sentiment, earnings, institutional ownership, dividends, valuation and risk.
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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
IDEX presently has a consensus price target of $250.71, suggesting a potential upside of 12.90%. Graco has a consensus price target of $88.25, suggesting a potential upside of 6.30%. Given Graco's stronger consensus rating and higher probable upside, analysts plainly believe IDEX is more favorable than Graco.
IDEX pays an annual dividend of $2.56 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 33.7% 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. Graco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
IDEX received 74 more outperform votes than Graco when rated by MarketBeat users. However, 60.86% of users gave Graco an outperform vote while only 58.42% of users gave IDEX an outperform vote.
IDEX has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Graco has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
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.
In the previous week, IDEX had 5 more articles in the media than Graco. MarketBeat recorded 11 mentions for IDEX and 6 mentions for Graco. Graco's average media sentiment score of 0.95 beat IDEX's score of 0.54 indicating that IDEX is being referred to more favorably in the media.
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.
Summary
IDEX beats Graco on 13 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.
This 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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