Reviewing Barnes Group (B) & Newport (NEWP)

Barnes Group (NYSE: B) and Newport (NASDAQ:NEWP) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares Barnes Group and Newport’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barnes Group $1.23 billion 2.77 $135.60 million $2.84 22.42
Newport N/A N/A N/A $0.78 29.47

Barnes Group has higher revenue and earnings than Newport. Barnes Group is trading at a lower price-to-earnings ratio than Newport, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

86.3% of Barnes Group shares are owned by institutional investors. 8.5% of Barnes Group 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Barnes Group and Newport, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnes Group 0 3 3 0 2.50
Newport 0 0 0 0 N/A

Barnes Group currently has a consensus target price of $65.60, indicating a potential upside of 3.02%. Given Barnes Group’s higher possible upside, analysts clearly believe Barnes Group is more favorable than Newport.

Profitability

This table compares Barnes Group and Newport’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnes Group 11.20% 12.44% 6.96%
Newport 6.37% 10.63% 6.60%

Dividends

Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Newport does not pay a dividend. Barnes Group pays out 19.7% of its earnings in the form of a dividend. Barnes Group has raised its dividend for 4 consecutive years.

Summary

Barnes Group beats Newport on 11 of the 13 factors compared between the two stocks.

Barnes Group Company Profile

Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.

Newport Company Profile

Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.

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