Global Power Equipment Group (OTCMKTS: GLPW) and Eaton Corporation, PLC (NYSE:ETN) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Risk and Volatility
Global Power Equipment Group has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Eaton Corporation, PLC has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
This table compares Global Power Equipment Group and Eaton Corporation, PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Power Equipment Group||N/A||N/A||N/A|
|Eaton Corporation, PLC||14.21%||12.89%||6.43%|
Eaton Corporation, PLC pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. Global Power Equipment Group does not pay a dividend. Eaton Corporation, PLC pays out 55.0% of its earnings in the form of a dividend. Eaton Corporation, PLC has increased its dividend for 7 consecutive years.
This is a breakdown of current recommendations and price targets for Global Power Equipment Group and Eaton Corporation, PLC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Power Equipment Group||0||0||0||0||N/A|
|Eaton Corporation, PLC||3||11||6||0||2.15|
Eaton Corporation, PLC has a consensus price target of $82.54, indicating a potential upside of 9.05%. Given Eaton Corporation, PLC’s higher possible upside, analysts clearly believe Eaton Corporation, PLC is more favorable than Global Power Equipment Group.
Earnings & Valuation
This table compares Global Power Equipment Group and Eaton Corporation, PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Global Power Equipment Group||$418.59 million||0.16||-$43.61 million||($2.52)||-1.50|
|Eaton Corporation, PLC||$19.75 billion||1.69||$1.92 billion||$4.36||17.36|
Eaton Corporation, PLC has higher revenue and earnings than Global Power Equipment Group. Global Power Equipment Group is trading at a lower price-to-earnings ratio than Eaton Corporation, PLC, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
30.5% of Global Power Equipment Group shares are owned by institutional investors. Comparatively, 76.8% of Eaton Corporation, PLC shares are owned by institutional investors. 1.9% of Global Power Equipment Group shares are owned by company insiders. Comparatively, 0.8% of Eaton Corporation, PLC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Eaton Corporation, PLC beats Global Power Equipment Group on 12 of the 15 factors compared between the two stocks.
About Global Power Equipment Group
Global Power Equipment Group Inc. is a design, engineering and manufacturing company providing an array of equipment and services to the global power infrastructure, energy and process industries. The Products segment includes two primary product categories: Electrical Solutions, which provides custom-configured electrical houses and generator enclosures for various industries. The Services segment provides lifecycle maintenance, repair, on-site specialty support, outage management, construction and fabrication services for the power generation, industrial, chemical/petrochemical processing, and oil and gas industries. Its products portfolio span from auxiliary equipment for gas turbines to small, high alloy parts, such as seals, shims and brackets. It also offers a range of services that have been managing plant asset value, including general and specialty construction, maintenance and modification, and plant management support services.
About Eaton Corporation, PLC
Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. On January 1, 2011, it closed the acquisition of the Tuthill Coupling Group, which is a division of the Tuthill Corporation. It has five segments: Electrical Americas and Electrical Rest of World; Hydraulics; Aerospace; Truck, and Automotive. On October 1, 2010, it acquired CopperLogic, Inc. On July 15, 2010, it acquired EMC Engineers, Inc. In May 2011, it acquired Internormen Technology Group. In August 2011, it acquired IE Power, Inc. In December 2011, it acquired E.A. Pedersen Company.
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