Colfax (CFX) and Parker-Hannifin (PH) Head-To-Head Comparison

Colfax (NYSE: CFX) and Parker-Hannifin (NYSE:PH) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for Colfax and Parker-Hannifin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colfax 2 4 9 0 2.47
Parker-Hannifin 0 7 8 0 2.53

Colfax presently has a consensus price target of $42.26, suggesting a potential upside of 36.68%. Parker-Hannifin has a consensus price target of $200.53, suggesting a potential upside of 18.49%. Given Colfax’s higher possible upside, analysts clearly believe Colfax is more favorable than Parker-Hannifin.

Profitability

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

Net Margins Return on Equity Return on Assets
Colfax 4.28% 5.95% 3.08%
Parker-Hannifin 6.54% 23.15% 7.80%

Dividends

Parker-Hannifin pays an annual dividend of $2.64 per share and has a dividend yield of 1.6%. Colfax does not pay a dividend. Parker-Hannifin pays out 41.2% of its earnings in the form of a dividend.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Colfax $3.30 billion 1.16 $151.09 million $1.21 25.55
Parker-Hannifin $12.03 billion 1.87 $983.41 million $6.41 26.40

Parker-Hannifin has higher revenue and earnings than Colfax. Colfax is trading at a lower price-to-earnings ratio than Parker-Hannifin, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

77.5% of Colfax shares are owned by institutional investors. Comparatively, 81.6% of Parker-Hannifin shares are owned by institutional investors. 10.6% of Colfax shares are owned by insiders. Comparatively, 1.1% of Parker-Hannifin shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Colfax has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Parker-Hannifin beats Colfax on 12 of the 16 factors compared between the two stocks.

About Colfax

Colfax Corporation is an industrial manufacturing and engineering company. The Company provides air and gas handling, and fabrication technology products and services. The Company’s segments include Air and Gas handling, and Fabrication Technology. The Air and Gas Handling segment supplies a range of gas handling products, including heavy-duty centrifugal and axial fans, rotary heat exchangers, gas compressors, pumps and certain related products, as well as aftermarket services. It serves the power generation, oil, gas and petrochemical, mining, marine (including defense) and general industrial and other end markets. The Fabrication Technology segment supplies welding equipment and consumables, cutting equipment and consumables, and automated welding and cutting systems. It formulates, develops, manufactures and supplies consumable products and equipment.

About Parker-Hannifin

Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment. The Diversified Industrial Segment consists of Automation Group, Engineered Materials Group, Filtration Group, Fluid Connectors Group, Hydraulics Group and Instrumentation Group. The Aerospace Systems Segment produces hydraulic, fuel, pneumatic and electro-mechanical systems and components, which are utilized on domestic commercial, military and general aviation aircrafts.

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