Analyzing Ingersoll Rand (IR) and Its Peers

Ingersoll Rand (NYSE:IR) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it compare to its competitors? We will compare Ingersoll Rand to similar companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Profitability

This table compares Ingersoll Rand and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ingersoll Rand	17.20%	13.47%	7.57%
Ingersoll Rand Competitors	-1,044.42%	-14.99%	0.57%

Valuation & Earnings

This table compares Ingersoll Rand and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ingersoll Rand	$7.65 billion	$581.40 million	23.06
Ingersoll Rand Competitors	$4.67 billion	$364.05 million	3.33

Ingersoll Rand has higher revenue and earnings than its competitors. Ingersoll Rand is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Ingersoll Rand pays out 2.3% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ingersoll Rand and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingersoll Rand	0	3	5	0	2.62
Ingersoll Rand Competitors	4197	14700	18201	805	2.41

Ingersoll Rand currently has a consensus target price of $95.00, indicating a potential upside of 16.06%. As a group, “Machinery” companies have a potential upside of 35.04%. Given Ingersoll Rand’s competitors higher possible upside, analysts plainly believe Ingersoll Rand has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

95.3% of Ingersoll Rand shares are held by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are held by institutional investors. 0.5% of Ingersoll Rand shares are held by company insiders. Comparatively, 14.2% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Ingersoll Rand has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Ingersoll Rand’s competitors have a beta of 5.12, indicating that their average share price is 412% more volatile than the S&P 500.

Summary

Ingersoll Rand beats its competitors on 10 of the 15 factors compared.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.