Chart Industries (NYSE:GTLS) and Applied Industrial Technologies (NYSE:AIT) Critical Analysis

Chart Industries (NYSE:GTLS) and Applied Industrial Technologies (NYSE:AIT) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Volatility & Risk

Chart Industries has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

93.5% of Applied Industrial Technologies shares are held by institutional investors. 1.0% of Chart Industries shares are held by company insiders. Comparatively, 1.6% of Applied Industrial Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Chart Industries and Applied Industrial Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chart Industries	$4.26 billion	2.33	$40.70 million	$0.26	798.22
Applied Industrial Technologies	$4.56 billion	2.54	$392.99 million	$10.59	29.66

Applied Industrial Technologies has higher revenue and earnings than Chart Industries. Applied Industrial Technologies is trading at a lower price-to-earnings ratio than Chart Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chart Industries and Applied Industrial Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chart Industries	2	11	0	0	1.85
Applied Industrial Technologies	0	1	5	0	2.83

Chart Industries currently has a consensus target price of $201.80, indicating a potential downside of 2.76%. Applied Industrial Technologies has a consensus target price of $313.67, indicating a potential downside of 0.14%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Applied Industrial Technologies is more favorable than Chart Industries.

Profitability

This table compares Chart Industries and Applied Industrial Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chart Industries	-0.62%	10.50%	3.65%
Applied Industrial Technologies	8.34%	21.64%	12.91%

Summary

Applied Industrial Technologies beats Chart Industries on 12 of the 14 factors compared between the two stocks.

About Chart Industries

Chart Industries, Inc. engages in the designing, engineering, and manufacturing of process technologies and equipment for the gas and liquid molecules in the United States and internationally. The company operates in four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers natural gas processing solutions; process technology, liquefaction capabilities, and critical equipment for the LNG, include small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum heat exchangers, Core-in-Kettle heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the HVAC, power, and refining applications. Further, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. Chart Industries, Inc. was founded in 1859 and is headquartered in Ball Ground, Georgia.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.