W.W. Grainger Inc. (NYSE:GWW) and Park-Ohio Holdings Corp. (NASDAQ:PKOH) have been rivals in the Industrial Equipment Wholesale for quite some time. Below is a review of each business including various aspects such as risk, analyst recommendations, profitability, institutional ownership, dividends, earnings and valuation.
Valuation & Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|W.W. Grainger Inc.||11.25B||1.35||796.00M||14.11||18.55|
|Park-Ohio Holdings Corp.||1.67B||0.23||55.00M||4.42||7.82|
Table 1 highlights W.W. Grainger Inc. and Park-Ohio Holdings Corp.’s top-line revenue, earnings per share and valuation. Park-Ohio Holdings Corp. seems to has lower revenue and earnings compared to W.W. Grainger Inc. The company that is currently more expensive of the two stocks is the one that has a higher P/E ratio. W.W. Grainger Inc.’s currently higher P/E ratio means it is more expensive than Park-Ohio Holdings Corp.
Table 2 represents W.W. Grainger Inc. (NYSE:GWW) and Park-Ohio Holdings Corp. (NASDAQ:PKOH)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|W.W. Grainger Inc.||7.08%||0%||0%|
|Park-Ohio Holdings Corp.||3.29%||18.1%||4.4%|
Volatility and Risk
W.W. Grainger Inc.’s volatility measures that it’s 5.00% less volatile than Standard and Poor’s 500 due to its 0.95 beta. Park-Ohio Holdings Corp. on the other hand, has 2.37 beta which makes it 137.00% more volatile compared to Standard and Poor’s 500.
2.4 and 1.4 are the respective Current Ratio and a Quick Ratio of W.W. Grainger Inc. Its rival Park-Ohio Holdings Corp.’s Current and Quick Ratios are 2.3 and 1.3 respectively. W.W. Grainger Inc. has a better chance of clearing its pay short and long-term debts than Park-Ohio Holdings Corp.
$5.44 per share with a dividend yield of 1.98% is the annual dividend that W.W. Grainger Inc. pay. The dividend yield for Park-Ohio Holdings Corp. is 1.57% while its annual dividend payout is $0.5 per share.
W.W. Grainger Inc. and Park-Ohio Holdings Corp. Ratings and Recommendations are available on the next table.
|Sell Ratings||Hold Ratings||Buy Ratings||Rating Score|
|W.W. Grainger Inc.||0||1||1||2.50|
|Park-Ohio Holdings Corp.||0||1||0||2.00|
W.W. Grainger Inc.’s upside potential currently stands at 15.90% and an $318 consensus target price. Park-Ohio Holdings Corp. on the other hand boasts of a $40 consensus target price and a 27.80% potential upside. The results from earlier shows that analysts belief suggest that Park-Ohio Holdings Corp. seems more appealing than W.W. Grainger Inc.
Insider & Institutional Ownership
Roughly 79.7% of W.W. Grainger Inc. shares are held by institutional investors while 54.7% of Park-Ohio Holdings Corp. are owned by institutional investors. About 1.7% of W.W. Grainger Inc.’s share are held by insiders. Insiders Comparatively, held 22.3% of Park-Ohio Holdings Corp. shares.
In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
|Performance (W)||Performance (M)||Performance (Q)||Performance (HY)||Performance (Y)||Performance (YTD)|
|W.W. Grainger Inc.||-5.34%||-14.11%||-16.44%||-10.88%||-11.47%||-7.29%|
|Park-Ohio Holdings Corp.||-0.69%||-5.64%||4.15%||-5.95%||-14.25%||12.74%|
For the past year W.W. Grainger Inc. had bearish trend while Park-Ohio Holdings Corp. had bullish trend.
On 14 of the 17 factors W.W. Grainger Inc. beats Park-Ohio Holdings Corp.
W.W. Grainger, Inc. distributes maintenance, repair, and operating (MRO) supplies; and other related products and services that are used by businesses and institutions in the United States, Canada, Europe, Asia, and Latin America. It operates through two segments, U.S. and Canada. The company offers material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, building and home inspection supplies, vehicle and fleet components, and various other products. It also offers inventory management solutions; and distributes tools, fasteners, and safety and industrial supplies. The company serves small and medium-sized businesses, large corporations, government entities, and other institutions. It offers its products through various branches, sales and service representatives, contact centers, distribution centers, direct marketing materials, and catalogs, as well as through Websites. W.W. Grainger, Inc. was founded in 1927 and is based in Lake Forest, Illinois.
Park-Ohio Holdings Corp., through its subsidiaries, provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Asia, Europe, Canada, Mexico, and internationally. The company's Supply Technologies segment offers Total Supply Management services, including engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and technical support services, as well as provides spare parts and aftermarket products; and sources, plans, and procures production components, including fasteners, pins, valves, hoses, wire harnesses, clamps and fittings, and rubber and plastic components. This segment also engineers and manufactures precision cold formed and cold extruded products, including locknuts, SPAC nuts, and wheel hardware. The company's Assembly Components segment manufactures aluminum products and high pressure direct fuel injection fuel rails and pipes, and fuel filler pipes, as well as flexible multi-layer plastic and rubber assemblies; and turbo charging hoses and turbo coolant hoses. This segment also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly; and supplies aluminum components. The company's Engineered Products segment manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined product primarily for the ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; and provides field services. The company was founded in 1961 and is headquartered in Cleveland, Ohio.
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