Barnes Group (NYSE: B) and Ingersoll-Rand PLC (Ireland) (NYSE:IR) are both mid-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Volatility & Risk
Barnes Group has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Ingersoll-Rand PLC (Ireland) has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Institutional & Insider Ownership
85.1% of Barnes Group shares are held by institutional investors. Comparatively, 80.6% of Ingersoll-Rand PLC (Ireland) shares are held by institutional investors. 8.5% of Barnes Group shares are held by insiders. Comparatively, 0.7% of Ingersoll-Rand PLC (Ireland) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Barnes Group and Ingersoll-Rand PLC (Ireland)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ingersoll-Rand PLC (Ireland)||7.60%||16.64%||6.40%|
Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Ingersoll-Rand PLC (Ireland) pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Barnes Group pays out 19.6% of its earnings in the form of a dividend. Ingersoll-Rand PLC (Ireland) pays out 44.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Barnes Group has increased its dividend for 4 consecutive years and Ingersoll-Rand PLC (Ireland) has increased its dividend for 6 consecutive years. Ingersoll-Rand PLC (Ireland) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Barnes Group and Ingersoll-Rand PLC (Ireland)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Barnes Group||$1.34 billion||2.87||$305.46 million||$2.86||25.00|
|Ingersoll-Rand PLC (Ireland)||$13.84 billion||1.67||$1.98 billion||$4.02||22.73|
Ingersoll-Rand PLC (Ireland) has higher revenue and earnings than Barnes Group. Ingersoll-Rand PLC (Ireland) is trading at a lower price-to-earnings ratio than Barnes Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Barnes Group and Ingersoll-Rand PLC (Ireland), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ingersoll-Rand PLC (Ireland)||0||6||7||0||2.54|
Barnes Group presently has a consensus target price of $65.75, suggesting a potential downside of 8.05%. Ingersoll-Rand PLC (Ireland) has a consensus target price of $100.25, suggesting a potential upside of 9.71%. Given Ingersoll-Rand PLC (Ireland)’s higher probable upside, analysts plainly believe Ingersoll-Rand PLC (Ireland) is more favorable than Barnes Group.
Barnes Group beats Ingersoll-Rand PLC (Ireland) on 9 of the 17 factors compared between the two stocks.
About Barnes Group
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
About Ingersoll-Rand PLC (Ireland)
Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.
Receive News & Ratings for Barnes Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Barnes Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.