Parker-Hannifin (NYSE:PH) and Highway (NASDAQ:HIHO) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Parker-Hannifin pays an annual dividend of $3.04 per share and has a dividend yield of 1.8%. Highway pays an annual dividend of $0.40 per share and has a dividend yield of 10.3%. Parker-Hannifin pays out 29.2% of its earnings in the form of a dividend.
79.5% of Parker-Hannifin shares are owned by institutional investors. Comparatively, 7.4% of Highway shares are owned by institutional investors. 1.1% of Parker-Hannifin shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Parker-Hannifin and Highway’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parker-Hannifin||$14.30 billion||1.59||$1.06 billion||$10.42||16.44|
|Highway||$19.17 million||0.77||$1.55 million||N/A||N/A|
Parker-Hannifin has higher revenue and earnings than Highway.
Risk & Volatility
Parker-Hannifin has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Highway has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.
This is a breakdown of current ratings for Parker-Hannifin and Highway, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parker-Hannifin currently has a consensus price target of $186.71, suggesting a potential upside of 8.99%. Given Parker-Hannifin’s higher possible upside, equities research analysts plainly believe Parker-Hannifin is more favorable than Highway.
This table compares Parker-Hannifin and Highway’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Parker-Hannifin beats Highway on 12 of the 14 factors compared between the two stocks.
Parker-Hannifin Company Profile
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates in two segments, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment provides static and dynamic sealing devices; filters, systems, and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors, which control, transmit, and contain fluid; hydraulic, pneumatic, and electromechanical components and systems for builders and users of industrial and mobile machinery and equipment; and critical flow components for process instrumentation, healthcare, and ultra-high-purity applications, as well as components for use in refrigeration and air conditioning systems, and in fluid control applications for processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment sells its products to original equipment manufacturers and their replacement markets in manufacturing, packaging, processing, transportation, mobile construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, including control actuation systems and components, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inserting systems, hydraulic systems and components, lubrication components, pneumatic control components, power conditioning and management systems, thermal management products, and wheels and brakes. This segment markets its products directly to original equipment manufacturers and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1918 and is headquartered in Cleveland, Ohio.
Highway Company Profile
Highway Holdings Limited, through its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEM) and contract manufacturers. The company operates in two segments, Metal Stamping and Mechanical OEM, and Electric OEM. It also engages in the trade of plastic injection products; and manufactures and assembles metal, plastic, mold, and electronic products, as well as automation equipment. The company's products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, it assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services. The company serves customers in Hong Kong/China, Europe, North America, and other Asian countries. Highway Holdings Limited was founded in 1990 and is headquartered in Sheung Shui, Hong Kong.
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