Nordson Corporation (NDSN) vs. Its Competitors Critical Comparison

Nordson Corporation (NASDAQ: NDSN) is one of 18 publicly-traded companies in the “Industrial Machinery” industry, but how does it weigh in compared to its peers? We will compare Nordson Corporation to related companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, risk and profitability.

Volatility & Risk

Nordson Corporation has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Nordson Corporation’s peers have a beta of 1.52, indicating that their average stock price is 52% more volatile than the S&P 500.

Institutional and Insider Ownership

65.5% of Nordson Corporation shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are owned by institutional investors. 2.2% of Nordson Corporation shares are owned by company insiders. Comparatively, 12.0% of shares of all “Industrial Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nordson Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordson Corporation 0 3 6 0 2.67
Nordson Corporation Competitors 44 291 290 8 2.41

Nordson Corporation presently has a consensus price target of $139.71, suggesting a potential upside of 14.18%. As a group, “Industrial Machinery” companies have a potential upside of 6.41%. Given Nordson Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Nordson Corporation is more favorable than its peers.

Earnings & Valuation

This table compares Nordson Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nordson Corporation $2.00 billion $548.73 million 24.37
Nordson Corporation Competitors $696.10 million $107.92 million 49.61

Nordson Corporation has higher revenue and earnings than its peers. Nordson Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. As a group, “Industrial Machinery” companies pay a dividend yield of 1.0% and pay out 34.1% of their earnings in the form of a dividend. Nordson Corporation has raised its dividend for 3 consecutive years.

Profitability

This table compares Nordson Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordson Corporation 14.57% 32.99% 10.73%
Nordson Corporation Competitors -24.03% 10.43% 4.25%

Summary

Nordson Corporation beats its peers on 10 of the 15 factors compared.

About Nordson Corporation

Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.

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