Analyzing Parker Hannifin (PH) and Mueller Water Products (MWA)

Parker Hannifin (NYSE: PH) and Mueller Water Products (NYSE:MWA) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares Parker Hannifin and Mueller Water Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parker Hannifin 7.16% 23.63% 8.27%
Mueller Water Products 12.47% 15.34% 6.26%

Institutional & Insider Ownership

80.2% of Parker Hannifin shares are held by institutional investors. Comparatively, 87.6% of Mueller Water Products shares are held by institutional investors. 1.1% of Parker Hannifin shares are held by company insiders. Comparatively, 3.0% of Mueller Water Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Parker Hannifin pays an annual dividend of $3.04 per share and has a dividend yield of 1.7%. Mueller Water Products pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Parker Hannifin pays out 37.5% of its earnings in the form of a dividend. Mueller Water Products pays out 45.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mueller Water Products has increased its dividend for 3 consecutive years. Parker Hannifin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Parker Hannifin has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Mueller Water Products has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Parker Hannifin and Mueller Water Products’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Parker Hannifin $12.03 billion 1.97 $983.41 million $8.11 21.99
Mueller Water Products $826.00 million 2.28 $123.30 million $0.44 27.02

Parker Hannifin has higher revenue and earnings than Mueller Water Products. Parker Hannifin is trading at a lower price-to-earnings ratio than Mueller Water Products, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Parker Hannifin and Mueller Water Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parker Hannifin 0 6 8 0 2.57
Mueller Water Products 1 2 4 0 2.43

Parker Hannifin presently has a consensus price target of $197.86, indicating a potential upside of 10.96%. Mueller Water Products has a consensus price target of $13.67, indicating a potential upside of 14.94%. Given Mueller Water Products’ higher possible upside, analysts plainly believe Mueller Water Products is more favorable than Parker Hannifin.

Summary

Parker Hannifin beats Mueller Water Products on 10 of the 17 factors compared between the two stocks.

Parker Hannifin Company Profile

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.

Mueller Water Products Company Profile

Mueller Water Products, Inc. manufactures and markets products and services for use in the transmission, distribution, and measurement of water in the United States, Canada, and internationally. It operates through Infrastructure and Technologies segments. The Infrastructure segment offers valves for water and gas systems, including iron gate, butterfly, tapping, check, knife, plug, automatic control, and ball valves; dry-barrel and wet-barrel fire hydrants; pipe repair products, such as clamps and couplings used to repair leaks under the Mueller and Jones brand names; small valves, meter bars, and line stopper fittings for use in gas systems; and machines and tools for tapping, drilling, extracting, installing, and stopping-off. This segment sells its products primarily through waterworks distributors to various end user customers, including municipalities, water and wastewater utilities, gas utilities, and fire protection and construction contractors. The Technologies segment provides residential and commercial water metering products and systems; and leak detection and pipe condition assessment products and services primarily to municipalities and waterworks distributors, as well as to end users. Mueller Water Products, Inc. is headquartered in Atlanta, Georgia.

Receive News & Ratings for Parker Hannifin Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Parker Hannifin and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply