Shengkai Innovations (OTCMKTS:VALV) and Parker-Hannifin (NYSE:PH) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Volatility & Risk
Shengkai Innovations has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.
Earnings and Valuation
This table compares Shengkai Innovations and Parker-Hannifin’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parker-Hannifin||$14.30 billion||1.55||$1.06 billion||$10.42||16.06|
Parker-Hannifin has higher revenue and earnings than Shengkai Innovations.
This table compares Shengkai Innovations and Parker-Hannifin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Shengkai Innovations and Parker-Hannifin, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parker-Hannifin has a consensus target price of $186.71, indicating a potential upside of 11.58%. Given Parker-Hannifin’s higher possible upside, analysts clearly believe Parker-Hannifin is more favorable than Shengkai Innovations.
Parker-Hannifin pays an annual dividend of $3.04 per share and has a dividend yield of 1.8%. Shengkai Innovations does not pay a dividend. Parker-Hannifin pays out 29.2% of its earnings in the form of a dividend.
Institutional and Insider Ownership
79.3% of Parker-Hannifin shares are held by institutional investors. 0.2% of Shengkai Innovations shares are held by company insiders. Comparatively, 1.1% of Parker-Hannifin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Parker-Hannifin beats Shengkai Innovations on 9 of the 11 factors compared between the two stocks.
About Shengkai Innovations
Shengkai Innovations, Inc., together with its subsidiaries, designs, manufactures, and distributes ceramic valves for industrial use in the People's Republic of China. The company provides ceramic valves in various categories, including gate, ball, back, adjustable, cut-off, and special valves. It also offers various services related to industrial ceramic valves consisting of manufacture, installation, and maintenance of general industrial ceramic valves, as well as the design and manufacture of a range of non-standard ceramic valves. The company sells its products through direct sales personnel and agents to electric power, petrochemical, chemical, aluminum, and metallurgy industries. Shengkai Innovations, Inc. also exports its products to Europe, North America, the Middle East, and the Asia-Pacific region. The company is headquartered in Tianjin, the People's Republic of China.
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates in two segments, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment provides static and dynamic sealing devices; filters, systems, and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors, which control, transmit, and contain fluid; hydraulic, pneumatic, and electromechanical components and systems for builders and users of industrial and mobile machinery and equipment; and critical flow components for process instrumentation, healthcare, and ultra-high-purity applications, as well as components for use in refrigeration and air conditioning systems, and in fluid control applications for processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment sells its products to original equipment manufacturers and their replacement markets in manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, including control actuation systems and components, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inserting systems, hydraulic systems and components, lubrication components, pneumatic control components, power conditioning and management systems, thermal management products, and wheels and brakes. This segment markets its products directly to original equipment manufacturers and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1918 and is headquartered in Cleveland, Ohio.
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