Reviewing Northgate (OTCMKTS:NGTEF) & Park-Ohio (NASDAQ:PKOH)

Northgate (OTCMKTS:NGTEF) and Park-Ohio (NASDAQ:PKOH) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Valuation and Earnings

This table compares Northgate and Park-Ohio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northgate	$863.72 million	0.83	N/A	N/A	N/A
Park-Ohio	$1.60 billion	0.45	$23.80 million	$1.88	26.28

Park-Ohio has higher revenue and earnings than Northgate.

Volatility & Risk

Northgate has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Park-Ohio has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

51.4% of Park-Ohio shares are held by institutional investors. 31.1% of Park-Ohio shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northgate	N/A	N/A	N/A
Park-Ohio	1.60%	10.55%	2.81%

Analyst Recommendations

This is a breakdown of current recommendations for Northgate and Park-Ohio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northgate	0	0	0	0	0.00
Park-Ohio	0	2	1	0	2.33

Park-Ohio has a consensus price target of $59.00, suggesting a potential upside of 19.43%. Given Park-Ohio’s stronger consensus rating and higher probable upside, analysts clearly believe Park-Ohio is more favorable than Northgate.

Summary

Park-Ohio beats Northgate on 10 of the 11 factors compared between the two stocks.

About Northgate

Northgate plc provides light commercial vehicle hire services in the United Kingdom, Spain, and the Republic of Ireland. It also sells used vehicles; supplies other related goods and services; and offers fleet management services. The company operates a fleet of 53,000 vehicles from 77 locations in the United Kingdom; and a fleet of 40,000 vehicles from 24 locations in Spain. It serves construction and distribution, manufacturing and engineering, and business service industries, as well as local authorities, public utilities, and retailers and wholesalers. The company was founded in 1981 and is headquartered in Darlington, the United Kingdom.

About Park-Ohio

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.