Financial Survey: Parker-Hannifin (NYSE:PH) versus Keyence (OTCMKTS:KYCCF)

Parker-Hannifin (NYSE:PH) and Keyence (OTCMKTS:KYCCF) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Parker-Hannifin and Keyence, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parker-Hannifin	0	4	17	0	2.81
Keyence	0	1	0	0	2.00

Parker-Hannifin currently has a consensus target price of $990.47, suggesting a potential upside of 2.75%. Given Parker-Hannifin’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Parker-Hannifin is more favorable than Keyence.

Profitability

This table compares Parker-Hannifin and Keyence’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parker-Hannifin	17.29%	27.56%	12.72%
Keyence	N/A	N/A	N/A

Volatility and Risk

Parker-Hannifin has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Keyence has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Insider and Institutional Ownership

82.4% of Parker-Hannifin shares are owned by institutional investors. 0.3% of Parker-Hannifin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Parker-Hannifin and Keyence”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parker-Hannifin	$19.85 billion	6.13	$3.53 billion	$27.42	35.15
Keyence	$7.06 billion	N/A	$2.66 billion	N/A	N/A

Parker-Hannifin has higher revenue and earnings than Keyence.

Summary

Parker-Hannifin beats Keyence on 11 of the 11 factors compared between the two stocks.

About Parker-Hannifin

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to ensure purity and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors used in fluid and gas handling; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment. This segment sells its products to original equipment manufacturers (OEMs) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, such as control actuation systems and components, engine build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, avionics, sensors, pneumatic control components, thermal management products, fire detection and suppression systems and components, and wheels and brakes, as well as fluid metering, delivery, and atomization devices. This segment markets its products directly to OEMs and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.

About Keyence

Keyence Corporation, together with its subsidiaries, engages in the development, manufacture, and sale of factory automation solutions in Japan, China, the United States, and internationally. The company offers photoelectric, fiber optic, laser, positioning, vision, specific solution, and inductive proximity sensors, as well as network communication units. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, inductive displacement sensor, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, multisensor measurement, and CMM/laser trackers. In addition, the company provides safety products comprising safety laser scanners, light curtains, interlock switches, and controllers; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it offers static eliminators/ionizers and electrostatic sensors, which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors; and programmable logic controllers, servo motor and system, and other controls that are used for machine control applications. Additionally, the company provides barcode and handheld scanners; laser marking systems/laser markers, UV laser coder, and industrial continuous inkjet printers; digital, 3D surface profilers, elemental analyzers, optical profilometers, and fluorescence microscopes; data loggers; and mobile/ handheld computers. It serves customers in automotive, semiconductors/LCDs, electronic devices, food/pharmaceutical, medical technology, logistics, metals, plastics, and films/sheets industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.