Graco (NYSE:GGG – Get Free Report) and Perma-Pipe International (NASDAQ:PPIH – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Profitability
This table compares Graco and Perma-Pipe International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Graco | 23.53% | 19.54% | 15.86% |
| Perma-Pipe International | 6.89% | 21.58% | 8.79% |
Analyst Ratings
This is a summary of recent ratings and target prices for Graco and Perma-Pipe International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Graco | 0 | 5 | 2 | 0 | 2.29 |
| Perma-Pipe International | 0 | 1 | 1 | 0 | 2.50 |
Valuation & Earnings
This table compares Graco and Perma-Pipe International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Graco | $2.24 billion | 5.54 | $521.84 million | $3.18 | 24.07 |
| Perma-Pipe International | $210.93 million | 1.18 | $17.03 million | $1.90 | 15.98 |
Graco has higher revenue and earnings than Perma-Pipe International. Perma-Pipe International is trading at a lower price-to-earnings ratio than Graco, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.9% of Graco shares are held by institutional investors. Comparatively, 28.4% of Perma-Pipe International shares are held by institutional investors. 2.2% of Graco shares are held by insiders. Comparatively, 1.1% of Perma-Pipe International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Graco has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Perma-Pipe International has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Summary
Graco beats Perma-Pipe International on 12 of the 14 factors compared between the two stocks.
About Graco
Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The Industrial segment provides liquid finishing equipment, paint circulating and supply pumps, paint circulating advanced control systems, plural component coating proportioners, and accessories and spare parts; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions. It also offers powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The Process segment provides pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. It sells its products through distributors, original equipment manufacturers, and home center channels, as well as to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.
About Perma-Pipe International
Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems. It offers insulated and jacketed district heating and cooling piping systems for energy distribution from central energy plants to various locations; and primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, as well as engages in the coating and insulation of oil and gas gathering and transmission pipelines. The company also offers liquid and powder based anti-corrosion coatings for external and internal surfaces of steel pipe, including shapes like bends, reducers, tees, and other spools/fittings that is used in pipelines for the transportation of oil and gas products and potable water. It has operations in the United States, Canada, the Middle East, North Africa, Europe, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was incorporated in 1993 and is headquartered in Spring, Texas.
Receive News & Ratings for Graco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Graco and related companies with MarketBeat.com's FREE daily email newsletter.
