Keyence (OTCMKTS:KYCCF – Get Free Report) and Graco (NYSE:GGG – Get Free Report) are both large-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Institutional and Insider Ownership
93.9% of Graco shares are held by institutional investors. 2.2% of Graco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Keyence and Graco”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Keyence | $7.31 billion | 17.10 | $2.78 billion | $3.60 | 143.10 |
| Graco | $2.24 billion | 5.66 | $521.84 million | $3.18 | 24.60 |
Keyence has higher revenue and earnings than Graco. Graco is trading at a lower price-to-earnings ratio than Keyence, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Keyence and Graco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Keyence | N/A | N/A | N/A |
| Graco | 23.53% | 19.54% | 15.86% |
Analyst Recommendations
This is a summary of current recommendations for Keyence and Graco, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Keyence | 0 | 0 | 2 | 2 | 3.50 |
| Graco | 0 | 5 | 2 | 0 | 2.29 |
Graco has a consensus price target of $95.00, indicating a potential upside of 21.45%. Given Graco’s higher possible upside, analysts clearly believe Graco is more favorable than Keyence.
Risk and Volatility
Keyence has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Graco has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
Summary
Keyence beats Graco on 8 of the 14 factors compared between the two stocks.
About Keyence
Keyence Corporation, together with its subsidiaries, engages in the development, manufacture, and sale of factory automation solutions in Japan, China, the United States, and internationally. The company offers photoelectric, fiber optic, laser, positioning, vision, specific solution, and inductive proximity sensors, as well as network communication units. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, inductive displacement sensor, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, multisensor measurement, and CMM/laser trackers. In addition, the company provides safety products comprising safety laser scanners, light curtains, interlock switches, and controllers; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it offers static eliminators/ionizers and electrostatic sensors, which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors; and programmable logic controllers, servo motor and system, and other controls that are used for machine control applications. Additionally, the company provides barcode and handheld scanners; laser marking systems/laser markers, UV laser coder, and industrial continuous inkjet printers; digital, 3D surface profilers, elemental analyzers, optical profilometers, and fluorescence microscopes; data loggers; and mobile/ handheld computers. It serves customers in automotive, semiconductors/LCDs, electronic devices, food/pharmaceutical, medical technology, logistics, metals, plastics, and films/sheets industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.
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.
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