Graham (NYSE:GHM – Get Free Report) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it compare to its peers? We will compare Graham to similar companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Analyst Ratings
This is a summary of recent recommendations for Graham and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Graham | 0 | 2 | 3 | 0 | 2.60 |
| Graham Competitors | 4185 | 14661 | 18152 | 799 | 2.41 |
Graham currently has a consensus price target of $123.33, indicating a potential upside of 72.16%. As a group, “Machinery” companies have a potential upside of 29.83%. Given Graham’s stronger consensus rating and higher possible upside, analysts clearly believe Graham is more favorable than its peers.
Volatility and Risk
Graham has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Graham’s peers have a beta of 4.53, meaning that their average share price is 353% more volatile than the S&P 500.
Dividends
Graham pays an annual dividend of $0.44 per share and has a dividend yield of 0.6%. Graham pays out 42.3% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.7% and pay out 24.7% of their earnings in the form of a dividend. Graham lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Profitability
This table compares Graham and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Graham | 4.53% | 11.09% | 5.17% |
| Graham Competitors | -1,044.50% | -15.16% | 0.53% |
Insider and Institutional Ownership
69.5% of Graham shares are held by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are held by institutional investors. 2.4% of Graham shares are held by company insiders. Comparatively, 14.3% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Graham and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Graham | $261.15 million | $12.50 million | 68.88 |
| Graham Competitors | $4.75 billion | $363.05 million | 3.59 |
Graham’s peers have higher revenue and earnings than Graham. Graham is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Summary
Graham beats its peers on 8 of the 15 factors compared.
About Graham
Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.
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