Financial Survey: Graham (GHM) vs. Gardner Denver (GDI)

Graham (NYSE: GHM) and Gardner Denver (NYSE:GDI) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Graham and Gardner Denver, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Graham 0 0 0 0 N/A
Gardner Denver 0 3 10 0 2.77

Gardner Denver has a consensus price target of $33.00, indicating a potential downside of 4.24%. Given Gardner Denver’s higher probable upside, analysts clearly believe Gardner Denver is more favorable than Graham.

Dividends

Graham pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Gardner Denver does not pay a dividend.

Insider and Institutional Ownership

80.7% of Graham shares are held by institutional investors. Comparatively, 99.8% of Gardner Denver shares are held by institutional investors. 3.3% of Graham shares are held by insiders. Comparatively, 1.7% of Gardner Denver shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Graham and Gardner Denver’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Graham $91.77 million 2.65 $5.02 million N/A N/A
Gardner Denver $2.38 billion 2.87 $18.40 million $0.10 344.60

Gardner Denver has higher revenue and earnings than Graham.

Profitability

This table compares Graham and Gardner Denver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graham -10.96% 2.67% 2.03%
Gardner Denver 2.70% 17.57% 5.28%

Summary

Gardner Denver beats Graham on 10 of the 12 factors compared between the two stocks.

About Graham

Graham Corporation, together with its subsidiaries, designs, manufactures, and sells vacuum and heat transfer equipment for the chemical, defense, petrochemical, petroleum refining, electric power generation, and other industries worldwide. It offers heat transfer equipment, including surface condensers, heliflows, water heaters, and various types of heat exchangers; and vacuum equipment consisting of steam jet ejector vacuum systems and liquid ring vacuum pumps. The company also services and sells spare parts for its equipment; and supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. In addition, it engages in fabrication and specialty machining activities. The company sells its products directly, as well as through independent sales representatives. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

About Gardner Denver

Gardner Denver Holdings, Inc. provides mission-critical flow control and compression equipment; and associated aftermarket parts, consumables, and services in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Industrials, Energy, and Medical. The Industrials segment designs, manufactures, markets, and services a range of air compression, vacuum, and blower products, as well as offers associated aftermarket parts, consumables, and services. Its products are used in process-critical applications, such as the operation of industrial air tools, vacuum packaging of food products, aeration of waste water, and others. This segment sells its products through an integrated network of direct sales representatives and independent distributors under the Gardner Denver, CompAir, Elmo Rietschle, Robuschi, and other brand names. The Energy segment engages in the design, manufacture, marketing, and service of a range of displacement and liquid ring vacuum pumps, compressors and integrated systems, and engineered fluid loading and transfer equipment, as well as offers associated aftermarket parts, consumables, and services under the Gardner Denver, Nash, Emco Wheaton, and other brands. It serves customers in upstream, midstream, and downstream energy markets, as well as petrochemical processing, transportation, and general industrial sectors. The Medical segment designs, manufactures, and markets a range of specialized gas, liquid, and precision syringe pumps and compressors for use in oxygen therapy, blood dialysis, patient monitoring, laboratory sterilization and wound treatment, and other applications. This segment sells its products under the Thomas and other brands. Gardner Denver Holdings, Inc. was founded in 1859 and is headquartered in Milwaukee, Wisconsin.

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