Reviewing Graham (NYSE:GHM) & TOMI Environmental Solutions (NASDAQ:TOMZ)

TOMI Environmental Solutions (NASDAQ:TOMZ) and Graham (NYSE:GHM) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares TOMI Environmental Solutions and Graham”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOMI Environmental Solutions	$6.93 million	1.82	-$3.75 million	($0.50)	-3.10
Graham	$245.29 million	3.41	$12.50 million	$1.04	68.41

Graham has higher revenue and earnings than TOMI Environmental Solutions. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TOMI Environmental Solutions and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOMI Environmental Solutions	-49.77%	-326.81%	-44.61%
Graham	4.53%	11.09%	5.17%

Risk & Volatility

TOMI Environmental Solutions has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, Graham has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for TOMI Environmental Solutions and Graham, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOMI Environmental Solutions	1	0	1	0	2.00
Graham	0	3	3	0	2.50

TOMI Environmental Solutions currently has a consensus target price of $7.00, suggesting a potential upside of 352.20%. Graham has a consensus target price of $123.33, suggesting a potential upside of 73.35%. Given TOMI Environmental Solutions’ higher probable upside, research analysts plainly believe TOMI Environmental Solutions is more favorable than Graham.

Institutional and Insider Ownership

4.8% of TOMI Environmental Solutions shares are owned by institutional investors. Comparatively, 69.5% of Graham shares are owned by institutional investors. 20.2% of TOMI Environmental Solutions shares are owned by insiders. Comparatively, 2.4% of Graham shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Graham beats TOMI Environmental Solutions on 11 of the 14 factors compared between the two stocks.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.