Comparing Applied Industrial Technologies (NYSE:AIT) and Diploma (OTCMKTS:DPLMF)

Diploma (OTCMKTS:DPLMF) and Applied Industrial Technologies (NYSE:AIT) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Profitability

This table compares Diploma and Applied Industrial Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diploma	N/A	N/A	N/A
Applied Industrial Technologies	8.35%	22.17%	13.43%

Earnings & Valuation

This table compares Diploma and Applied Industrial Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diploma	N/A	N/A	N/A	N/A	N/A
Applied Industrial Technologies	$4.97 billion	2.52	$414.52 million	$10.96	31.15

Applied Industrial Technologies has higher revenue and earnings than Diploma.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Diploma and Applied Industrial Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diploma	0	0	0	0	0.00
Applied Industrial Technologies	0	0	7	0	3.00

Applied Industrial Technologies has a consensus target price of $400.00, indicating a potential upside of 17.17%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Applied Industrial Technologies is more favorable than Diploma.

Insider & Institutional Ownership

93.5% of Applied Industrial Technologies shares are owned by institutional investors. 1.6% of Applied Industrial Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Applied Industrial Technologies beats Diploma on 9 of the 9 factors compared between the two stocks.

About Diploma

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, Continental Europe, North America, and internationally. It operates through three business sectors: Life Sciences, Seals, and Controls. The Life Sciences sector supplies technology-enabled products used in surgical procedures in operating theatres and endoscopy; testing equipment and services for clinical laboratories; and bio-pharma, food safety and testing, and other research-oriented products. It serves hospitals, clinical laboratories, and research facilities. The Seals sector supplies various seals, gaskets, cylinders, components, and kits used in heavy mobile machinery; and O-rings, fittings, hydraulic and industrial hoses, pneumatics products, pumps, and related accessories. The Controls sector offers wire and cabling, interconnect, specialty fasteners, and adhesive and industrial automation solutions for various applications. Diploma PLC was incorporated in 1999 and is based in London, the United Kingdom.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.