Financial Survey: Milacron Holdings Corp (MCRN) & Woodward (WWD)
Milacron Holdings Corp (NYSE: MCRN) and Woodward (NASDAQ:WWD) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Milacron Holdings Corp does not pay a dividend. Woodward pays out 15.8% of its earnings in the form of a dividend.
Insider and Institutional Ownership
71.3% of Woodward shares are owned by institutional investors. 3.4% of Milacron Holdings Corp shares are owned by insiders. Comparatively, 5.9% of Woodward shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings for Milacron Holdings Corp and Woodward, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Milacron Holdings Corp||0||0||2||0||3.00|
Milacron Holdings Corp presently has a consensus target price of $22.00, suggesting a potential upside of 35.80%. Woodward has a consensus target price of $74.75, suggesting a potential upside of 3.08%. Given Milacron Holdings Corp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Milacron Holdings Corp is more favorable than Woodward.
Earnings & Valuation
This table compares Milacron Holdings Corp and Woodward’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Milacron Holdings Corp||$1.18 billion||0.95||$188.00 million||($0.10)||-161.98|
|Woodward||$2.08 billion||2.14||$342.57 million||$3.17||22.88|
Woodward has higher revenue and earnings than Milacron Holdings Corp. Milacron Holdings Corp is trading at a lower price-to-earnings ratio than Woodward, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Milacron Holdings Corp has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Woodward has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
This table compares Milacron Holdings Corp and Woodward’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Milacron Holdings Corp||3.27%||9.05%||2.32%|
Woodward beats Milacron Holdings Corp on 13 of the 16 factors compared between the two stocks.
About Milacron Holdings Corp
Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
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