Financial Contrast: Nordson Corporation (NDSN) vs. EnPro Industries (NPO)
Nordson Corporation (NASDAQ: NDSN) and EnPro Industries (NYSE:NPO) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
This table compares Nordson Corporation and EnPro Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. EnPro Industries pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. EnPro Industries pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnPro Industries has increased its dividend for 3 consecutive years. EnPro Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations for Nordson Corporation and EnPro Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nordson Corporation currently has a consensus price target of $138.00, suggesting a potential upside of 21.91%. EnPro Industries has a consensus price target of $85.00, suggesting a potential upside of 13.90%. Given Nordson Corporation’s higher probable upside, analysts plainly believe Nordson Corporation is more favorable than EnPro Industries.
Valuation and Earnings
This table compares Nordson Corporation and EnPro Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nordson Corporation||$2.00 billion||3.27||$534.78 million||$5.02||22.55|
|EnPro Industries||$1.18 billion||1.35||$162.20 million||$0.85||87.80|
Nordson Corporation has higher revenue and earnings than EnPro Industries. Nordson Corporation is trading at a lower price-to-earnings ratio than EnPro Industries, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
66.0% of Nordson Corporation shares are held by institutional investors. Comparatively, 94.4% of EnPro Industries shares are held by institutional investors. 2.2% of Nordson Corporation shares are held by company insiders. Comparatively, 2.6% of EnPro Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Nordson Corporation has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, EnPro Industries has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Nordson Corporation beats EnPro Industries on 11 of the 17 factors compared between the two stocks.
Nordson Corporation Company Profile
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.
EnPro Industries Company Profile
EnPro Industries, Inc. is engaged in the designing, developing, manufacturing and marketing engineered industrial products. It operates through three segments. The Sealing Products segment includes three operating divisions: Garlock, which designs, manufactures and sells sealing products; Technetics, which designs, manufactures and sells metal seals and elastomeric seals, among others, and Stemco LP (Stemco), which designs, manufactures and sells heavy-duty truck wheel-end components and systems. The Engineered Products segment includes two industrial products businesses: GGB, which designs, manufactures and sells self-lubricating, non-rolling, metal polymer and engineered plastics, among others, and Compressor Products International, which designs, manufactures, sells and services components. The Power Systems segment includes Fairbanks Morse business, which designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines.
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