Comparing Graco (NYSE:GGG) & Ampco-Pittsburgh Corporation (AP)

Graco (NYSE: GGG) and Ampco-Pittsburgh Corporation (NYSE:AP) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Valuation & Earnings

This table compares Graco and Ampco-Pittsburgh Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Graco $1.40 billion 4.49 $397.35 million $1.55 72.50
Ampco-Pittsburgh Corporation $389.05 million 0.42 $7.81 million ($5.94) -2.25

Graco has higher revenue and earnings than Ampco-Pittsburgh Corporation. Ampco-Pittsburgh Corporation is trading at a lower price-to-earnings ratio than Graco, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Graco and Ampco-Pittsburgh Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Graco 0 4 0 0 2.00
Ampco-Pittsburgh Corporation 0 0 1 0 3.00

Graco presently has a consensus price target of $101.00, suggesting a potential downside of 10.12%. Ampco-Pittsburgh Corporation has a consensus price target of $22.00, suggesting a potential upside of 64.79%. Given Ampco-Pittsburgh Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Ampco-Pittsburgh Corporation is more favorable than Graco.

Risk and Volatility

Graco has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Ampco-Pittsburgh Corporation has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Profitability

This table compares Graco and Ampco-Pittsburgh Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graco 6.50% 40.21% 18.93%
Ampco-Pittsburgh Corporation -18.73% -25.72% -7.33%

Institutional and Insider Ownership

90.1% of Graco shares are held by institutional investors. Comparatively, 55.9% of Ampco-Pittsburgh Corporation shares are held by institutional investors. 5.7% of Graco shares are held by company insiders. Comparatively, 29.9% of Ampco-Pittsburgh Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Graco pays an annual dividend of $1.44 per share and has a dividend yield of 1.3%. Ampco-Pittsburgh Corporation pays an annual dividend of $0.36 per share and has a dividend yield of 2.7%. Graco pays out 92.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ampco-Pittsburgh Corporation pays out -6.1% of its earnings in the form of a dividend. Graco has increased its dividend for 12 consecutive years. Ampco-Pittsburgh Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Graco beats Ampco-Pittsburgh Corporation on 9 of the 16 factors compared between the two stocks.

Graco Company Profile

Graco Inc. designs, manufactures and markets systems and equipment used to move, measure, control, dispense and spray fluid and powder materials. The Company specializes in equipment for applications that involve materials with viscosities, materials with abrasive or corrosive properties, and multiple-component materials that require ratio control. The Company operates through three segments: Industrial, Process and Contractor. The Industrial segment markets equipment and pre-engineered packages for moving and applying paints, coatings, sealants, adhesives and other fluids. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. The Contractor segment markets sprayers for architectural coatings for painting, corrosion control, texture and line striping. Its equipment is used in the manufacturing, processing, construction and maintenance industries.

Ampco-Pittsburgh Corporation Company Profile

Ampco-Pittsburgh Corporation is engaged in manufacturing and selling specialty metal products and customized equipment utilized by industry throughout the world. The Company operates through two segments: the Forged and Cast Engineered Products segment, and the Air and Liquid Processing segment. The Forged and Cast Engineered Products segment consists of Union Electric Steel Corporation (Union Electric Steel or UES) and Union Electric Steel UK Limited (UES-UK). The Air and Liquid Processing segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid Systems Corporation (Air and Liquid), a subsidiary of the Company. Union Electric Steel produces ingot and forged products that service a range of industries across the globe. UES-UK produces cast rolls for hot and cold strip mills, medium/heavy section mills and plate mills in a range of iron and steel qualities.

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