Head to Head Contrast: Sumitomo Heavy (OTCMKTS:SOHVY) vs. Gorman-Rupp (NYSE:GRC)

Sumitomo Heavy (OTCMKTS:SOHVY) and Gorman-Rupp (NYSE:GRC) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Dividends

Sumitomo Heavy pays an annual dividend of $0.14 per share and has a dividend yield of 2.1%. Gorman-Rupp pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. Sumitomo Heavy pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gorman-Rupp pays out 39.8% of its earnings in the form of a dividend. Gorman-Rupp has raised its dividend for 52 consecutive years.

Institutional and Insider Ownership

59.3% of Gorman-Rupp shares are owned by institutional investors. 11.3% of Gorman-Rupp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Sumitomo Heavy and Gorman-Rupp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Heavy	0.36%	4.86%	2.47%
Gorman-Rupp	7.41%	13.49%	6.10%

Volatility and Risk

Sumitomo Heavy has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Gorman-Rupp has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Sumitomo Heavy and Gorman-Rupp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Heavy	0	0	0	0	0.00
Gorman-Rupp	0	0	1	0	3.00

Valuation and Earnings

This table compares Sumitomo Heavy and Gorman-Rupp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Heavy	$7.08 billion	0.45	$50.97 million	$0.07	95.57
Gorman-Rupp	$659.67 million	1.87	$40.12 million	$1.91	24.60

Sumitomo Heavy has higher revenue and earnings than Gorman-Rupp. Gorman-Rupp is trading at a lower price-to-earnings ratio than Sumitomo Heavy, indicating that it is currently the more affordable of the two stocks.

Summary

Gorman-Rupp beats Sumitomo Heavy on 12 of the 16 factors compared between the two stocks.

About Sumitomo Heavy

Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Japan and internationally. Its Mechatronics segment offers gearmotors, gearboxes, motion control drives, motors and inverters, drive solutions, precision positioning equipment, laser systems, control systems, motion components, and collaborative robot. The company's Industrial Machinery segment provides injection molding machines, cryocoolers, ion implanters, PET tracer production systems, vacuum coasting equipment, steel tube air forming, non-destructive inspections, clean room system, cast iron and steel rolls for hot rolling, and coolant systems. Its Logistics & Construction segment offers hydraulic excavators, crawler cranes, material handing systems, parking systems, transfer molding presses, cryopumps, proton therapy systems, forging presses, lifting magnets, spinning machines, dust collectors, surface grinding machines, extrusion coating line, road machinery, foundation machines, logistics systems, and forklifts. The company's Energy & Lifelines segment provides circulating fluidized bed (CFB) boilers, liquid air energy storage, electrostatic precipitators, evaporation and crystallization facilities, waste heat boilers, CFB scrubbers, flue gas denitrification systems, industrial wastewater treatment facilities, steam turbines, distillation technology and extractors, mixing vessels, and food and beverage manufacturing facilities. This segment also offers bubbling fluidized bed boilers, rotary kiln-type recycling facilities, ash handling systems, fluidized bed gasifiers, waste-to-energy plants baghouses, digital services, water and sewage treatment systems, process pumps, reactor vessels, coke oven machines, and oils tankers. The company provides IT solutions and security services. Sumitomo Heavy Industries, Ltd. was founded in 1888 and is headquartered in Tokyo, Japan.

About Gorman-Rupp

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.