Gorman-Rupp (GRC) and Its Peers Critical Review

Gorman-Rupp (NYSE:GRC) is one of 436 public companies in the “Machinery” industry, but how does it contrast to its rivals? We will compare Gorman-Rupp to related businesses based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Dividends

Gorman-Rupp pays an annual dividend of $0.76 per share and has a dividend yield of 1.1%. Gorman-Rupp pays out 27.1% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend. Gorman-Rupp has increased its dividend for 52 consecutive years. Gorman-Rupp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Gorman-Rupp and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gorman-Rupp	$682.39 million	$53.02 million	24.99
Gorman-Rupp Competitors	$4.62 billion	$362.62 million	6.35

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

Insider & Institutional Ownership

59.3% of Gorman-Rupp shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are owned by institutional investors. 11.6% of Gorman-Rupp shares are owned by insiders. Comparatively, 14.1% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Gorman-Rupp has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Gorman-Rupp’s rivals have a beta of 5.12, meaning that their average stock price is 412% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Gorman-Rupp and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gorman-Rupp	0	2	1	0	2.33
Gorman-Rupp Competitors	4214	14730	18258	809	2.41

As a group, “Machinery” companies have a potential upside of 30.43%. Given Gorman-Rupp’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Gorman-Rupp has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gorman-Rupp	10.20%	17.13%	8.61%
Gorman-Rupp Competitors	-1,035.50%	-36.21%	-0.24%

Summary

Gorman-Rupp rivals beat Gorman-Rupp on 10 of the 15 factors compared.

About Gorman-Rupp

Gorman-Rupp is a manufacturer of pumps and related pumping systems. Its products include self-priming and standard centrifugal pumps, submersible pumps, rotary gear pumps, diaphragm pumps and engine-driven units, serving applications that require the movement of water and other fluids. The company’s products are used in markets including municipal water and wastewater, construction, industrial processing, agriculture, petroleum and fire protection. Gorman-Rupp serves customers in the United States and internationally.