Nordson (NASDAQ: NDSN) and Barnes Group (NYSE:B) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Valuation and Earnings
This table compares Nordson and Barnes Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nordson||$2.07 billion||3.82||$295.80 million||$5.37||25.39|
|Barnes Group||$1.44 billion||2.22||$59.41 million||$2.88||20.80|
Volatility and Risk
Nordson has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Barnes Group has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
This is a summary of recent ratings for Nordson and Barnes Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nordson presently has a consensus price target of $153.78, suggesting a potential upside of 12.79%. Barnes Group has a consensus price target of $67.00, suggesting a potential upside of 11.87%. Given Nordson’s stronger consensus rating and higher possible upside, analysts plainly believe Nordson is more favorable than Barnes Group.
This table compares Nordson and Barnes Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nordson pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Nordson pays out 22.3% of its earnings in the form of a dividend. Barnes Group pays out 19.4% 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. Nordson has increased its dividend for 4 consecutive years and Barnes Group has increased its dividend for 5 consecutive years. Barnes Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
66.7% of Nordson shares are owned by institutional investors. Comparatively, 87.8% of Barnes Group shares are owned by institutional investors. 2.0% of Nordson shares are owned by insiders. Comparatively, 8.5% of Barnes Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Nordson beats Barnes Group on 11 of the 17 factors compared between the two stocks.
Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.
About Barnes Group
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
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