Reviewing Graco Inc. (GGG)’s and AMETEK Inc. (NYSE:AME)’s results

Graco Inc. (NYSE:GGG) and AMETEK Inc. (NYSE:AME) compete against each other in the Diversified Machinery sector. We will contrast them and contrast their dividends, analyst recommendations, profitability, risk, institutional ownership, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Graco Inc. 1.65B 4.76 341.05M 1.97 24.18
AMETEK Inc. 4.85B 3.79 777.93M 3.29 24.15

Table 1 shows top-line revenue, earnings per share (EPS) and valuation of the two companies. AMETEK Inc. has higher revenue and earnings than Graco Inc. Business that currently has a higher P/E ratio means that it is the more expensive of the two businesses. Graco Inc. is currently more expensive than AMETEK Inc., because it’s trading at a higher P/E ratio.

Profitability

Table 2 shows Graco Inc. and AMETEK Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graco Inc. 20.67% 45.7% 23%
AMETEK Inc. 16.04% 18% 9.4%

Volatility and Risk

Graco Inc. has a beta of 0.97 and its 3.00% less volatile than Standard & Poor’s 500. Competitively, AMETEK Inc.’s 20.00% volatility makes it more volatile than Standard & Poor’s 500, because of the 1.2 beta.

Liquidity

The Current Ratio and a Quick Ratio of Graco Inc. are 2.4 and 1.5. Competitively, AMETEK Inc. has 1.5 and 1 for Current and Quick Ratio. Graco Inc.’s better ability to pay short and long-term obligations than AMETEK Inc.

Dividends

Graco Inc. shareholders receive an annual dividend of $0.56 per share which is subject to 1.16% dividend yield. Meanhile, AMETEK Inc.’s yearly dividend is $0.56 per share and 0.69% dividend yield.

Analyst Recommendations

The Ratings and Recommendations for Graco Inc. and AMETEK Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Graco Inc. 0 1 0 2.00
AMETEK Inc. 0 0 4 3.00

Graco Inc. has a consensus price target of $46, and a -3.22% downside potential. On the other hand, AMETEK Inc.’s potential upside is 7.35% and its average price target is $86.75. Based on the analysts view we can conclude, AMETEK Inc. is looking more favorable than Graco Inc.

Insider and Institutional Ownership

Institutional investors held 86.4% of Graco Inc. shares and 88.2% of AMETEK Inc. shares. About 0.5% of Graco Inc.’s share are held by insiders. On the other hand, insiders held about 0.3% of AMETEK Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Graco Inc. 0.51% 9.83% 9.43% 1.02% 8.68% 13.72%
AMETEK Inc. -0.34% 9.05% 7.53% 2.82% 7.17% 17.43%

For the past year Graco Inc. was less bullish than AMETEK Inc.

Graco Inc., together with its subsidiaries, designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. It operates through three segments: Industrial, Process, and Contractor. The Industrial segment offers proportioning systems that are used to spray polyurethane foam and polyurea coatings; vapor-abrasive blasting equipment; 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. This segment also provides paint circulating and supply pumps; paint circulating advanced control systems; plural component coating proportioners; spare parts and accessories; and powder finishing products that coat powder finishing on metals under the Gema name. The Process segment offers pumps that move chemicals, water, wastewater, petroleum, food, 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. This segment 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. The Contractor segment offers sprayers that apply paint and texture to walls, other structures, and ceilings; and highly viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The company was founded in 1926 and is headquartered in Minneapolis, Minnesota.

AMETEK, Inc. manufactures electronic instruments and electromechanical devices worldwide. Its Electronic Instruments Group segment offers advanced instruments for the process, power and industrial, and aerospace markets; process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor, and automation markets; instruments for the laboratory equipment, ultraprecision manufacturing, medical, and test and measurement markets; and vision systems to inspect surfaces. This segment also provides aircraft and engine sensors, monitoring systems, power instruments, data acquisition units, and fuel and fluid measurement systems for the aerospace industry; power quality monitoring and metering devices, industrial battery chargers, uninterruptible power supplies, programmable power and electrical test equipment, and gas turbine sensors; and dashboard instruments for heavy trucks and other vehicles, as well as timing controls and cooking computers for the food service industry. Its Electromechanical Group segment offers thermal management systems, specialty metals, and electrical interconnects; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; engineered electrical connectors and packaging products to protect sensitive electronic devices; floor care and specialty motors; and metal tubing products. This segment also provides high-purity metals, metal strips, shaped wires, and advanced composites for various industrial applications; and motors used in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, industrial blowers, and vacuum cleaners, as well as operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and education communication solutions for hospitals, health systems, and educational facilities. AMETEK, Inc. was founded in 1930 and is headquartered in Berwyn, Pennsylvania.