DNOW (NYSE:DNOW – Get Free Report) and Paul Mueller (OTCMKTS:MUEL – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Risk & Volatility
DNOW has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Paul Mueller has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.
Valuation and Earnings
This table compares DNOW and Paul Mueller”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DNOW | $2.37 billion | 0.63 | $81.00 million | $0.87 | 16.46 |
| Paul Mueller | $248.59 million | 1.51 | $29.67 million | $40.20 | 10.35 |
DNOW has higher revenue and earnings than Paul Mueller. Paul Mueller is trading at a lower price-to-earnings ratio than DNOW, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DNOW and Paul Mueller’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DNOW | 3.91% | 9.35% | 6.55% |
| Paul Mueller | 12.37% | 36.21% | 18.19% |
Analyst Ratings
This is a breakdown of current ratings and target prices for DNOW and Paul Mueller, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DNOW | 0 | 1 | 2 | 1 | 3.00 |
| Paul Mueller | 0 | 0 | 0 | 0 | 0.00 |
DNOW currently has a consensus price target of $17.67, suggesting a potential upside of 23.37%. Given DNOW’s stronger consensus rating and higher probable upside, research analysts clearly believe DNOW is more favorable than Paul Mueller.
Institutional & Insider Ownership
97.6% of DNOW shares are held by institutional investors. 2.7% of DNOW shares are held by company insiders. Comparatively, 4.0% of Paul Mueller shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
DNOW beats Paul Mueller on 9 of the 15 factors compared between the two stocks.
About DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
About Paul Mueller
Paul Mueller Company, together with its subsidiaries, provides manufactured equipment and components in the United States, North America, Asia, the Far East, the Netherlands, EU countries, Europe, and internationally. The company operates through four reportable segments: Dairy Farm Equipment, Industrial Equipment, Field Fabrication, and Transportation. The Dairy Farm Equipment segment offers milk cooling and storage equipment and accessories, refrigeration units, and heat recovery equipment for use on dairy farms to independent dealers for resale, and directly to farmers; and services for farmers, as well as milk coolers for rent to farmers. The Industrial Equipment segment sells food, beverage, chemical, and industrial processing equipment; and biopharmaceutical and pure water equipment, as well as stainless steel, alloy processing, storage tanks, and heat transfer products. The Field Fabrication segment sells large, field-fabricated tanks and vessels, such as stainless steel storage tanks for sanitary and industrial process applications. The Transportation segment offers delivery of products to customers; backhauls of materials and components; and contract carriage for third parties. It serves its products in various industries, including animal health, beverage, brewing, chemical, dairy farm, dairy processing, food, heat transfer, HVAC, industrial construction, oil and gas, personal care, pharmaceutical, pure water, tank fabrication, and wine. The company was founded in 1940 and is headquartered in Springfield, Missouri.
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