Graco (NYSE: GGG) is one of 8 publicly-traded companies in the “Pumps & pumping equipment” industry, but how does it compare to its peers? We will compare Graco to similar companies based on the strength of its analyst recommendations, dividends, profitability, risk, institutional ownership, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations for Graco and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Graco 0 6 0 0 2.00
Graco Competitors 99 568 511 9 2.36

Graco currently has a consensus price target of $46.50, indicating a potential downside of 2.19%. As a group, “Pumps & pumping equipment” companies have a potential upside of 5.93%. Given Graco’s peers stronger consensus rating and higher probable upside, analysts clearly believe Graco has less favorable growth aspects than its peers.

Institutional and Insider Ownership

85.7% of Graco shares are owned by institutional investors. Comparatively, 77.2% of shares of all “Pumps & pumping equipment” companies are owned by institutional investors. 4.2% of Graco shares are owned by company insiders. Comparatively, 8.5% of shares of all “Pumps & pumping equipment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Graco has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Graco’s peers have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Earnings & Valuation

This table compares Graco and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Graco $1.65 billion $341.05 million 25.29
Graco Competitors $2.55 billion $233.11 million 18.56

Graco’s peers have higher revenue, but lower earnings than Graco. Graco is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Graco pays an annual dividend of $0.64 per share and has a dividend yield of 1.3%. Graco pays out 34.0% of its earnings in the form of a dividend. As a group, “Pumps & pumping equipment” companies pay a dividend yield of 1.3% and pay out 30.8% of their earnings in the form of a dividend. Graco has raised its dividend for 14 consecutive years.

Profitability

This table compares Graco and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graco 20.63% 43.67% 22.03%
Graco Competitors 7.63% 15.18% 8.14%

Summary

Graco peers beat Graco on 8 of the 15 factors compared.

Graco Company Profile

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The company's Industrial segment offers proportioning systems 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. It also provides liquid finishing equipment; paint circulating and supply pumps; paint circulating advanced control systems; plural component coating proportioners; spare parts and accessories; and powder finishing products to coat powder finishing on metals. The company's Process segment offers pumps to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants, 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. It 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 company's Contractor segment offers sprayers to apply paint to walls and other structures; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. It primarily sells its products through distributors, original equipment manufacturers, and home center channels; and directly to end-users. The company was founded in 1926 and is headquartered in Minneapolis, Minnesota.

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