Park-Ohio (PKOH) vs. Its Peers Critical Analysis

Park-Ohio (NASDAQ:PKOH) is one of 157 public companies in the “Trading Companies & Distributors” industry, but how does it contrast to its rivals? We will compare Park-Ohio to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Volatility & Risk

Park-Ohio has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Park-Ohio’s rivals have a beta of 1.32, suggesting that their average share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Park-Ohio and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park-Ohio	0	1	2	0	2.67
Park-Ohio Competitors	1462	4912	6710	239	2.43

Park-Ohio currently has a consensus price target of $59.00, suggesting a potential upside of 48.95%. As a group, “Trading Companies & Distributors” companies have a potential upside of 12.19%. Given Park-Ohio’s stronger consensus rating and higher possible upside, equities analysts clearly believe Park-Ohio is more favorable than its rivals.

Earnings and Valuation

This table compares Park-Ohio and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Park-Ohio	$1.60 billion	$23.80 million	21.07
Park-Ohio Competitors	$6.80 billion	$363.16 million	33.68

Park-Ohio’s rivals have higher revenue and earnings than Park-Ohio. Park-Ohio is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Park-Ohio and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park-Ohio	1.60%	10.55%	2.81%
Park-Ohio Competitors	1.06%	-34.39%	3.54%

Dividends

Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Park-Ohio pays out 26.6% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.7% and pay out 34.8% of their earnings in the form of a dividend.

Insider and Institutional Ownership

51.4% of Park-Ohio shares are owned by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 31.1% of Park-Ohio shares are owned by company insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Park-Ohio beats its rivals on 9 of the 15 factors compared.

Park-Ohio Company Profile

Park-Ohio Holdings Corp. provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Europe, Asia, Mexico, Canada, and internationally. It operates through three segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies segment offers Total Supply Management that comprises engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, such as valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products. This segment also engineers and manufactures precision cold-formed and cold-extruded fasteners, and other products comprising locknuts, SPAC nuts, SPAC bolts, and wheel hardware. The Assembly Components segment offers direct fuel injection fuel rails and pipes, fuel filler pipes, and flexible multi-layer plastic and rubber assemblies; turbo charging and coolant hoses; and value-added services comprising design engineering, machining, and parts assembly. The Engineered Products segment provides engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; field services; and forges aerospace and defense structural components, such as landing gears and struts, as well as rail products comprising railcar center plates and draft lugs. Park-Ohio Holdings Corp. was founded in 1907 and is headquartered in Cleveland, Ohio.