Head-To-Head Contrast: Park-Ohio (NASDAQ:PKOH) & QXO (NYSE:QXO)

Park-Ohio (NASDAQ:PKOH) and QXO (NYSE:QXO) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Park-Ohio	1.60%	10.55%	2.81%
QXO	-5.17%	2.41%	1.20%

Institutional and Insider Ownership

51.4% of Park-Ohio shares are owned by institutional investors. Comparatively, 58.7% of QXO shares are owned by institutional investors. 31.1% of Park-Ohio shares are owned by insiders. Comparatively, 41.0% of QXO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Park-Ohio has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, QXO has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Park-Ohio and QXO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park-Ohio	0	1	2	0	2.67
QXO	1	1	14	1	2.88

Park-Ohio presently has a consensus price target of $59.00, suggesting a potential upside of 35.98%. QXO has a consensus price target of $24.77, suggesting a potential upside of 113.80%. Given QXO’s stronger consensus rating and higher possible upside, analysts plainly believe QXO is more favorable than Park-Ohio.

Valuation and Earnings

This table compares Park-Ohio and QXO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park-Ohio	$1.60 billion	0.39	$23.80 million	$1.88	23.08
QXO	$6.84 billion	1.76	-$279.40 million	($0.90)	-12.87

Park-Ohio has higher earnings, but lower revenue than QXO. QXO is trading at a lower price-to-earnings ratio than Park-Ohio, indicating that it is currently the more affordable of the two stocks.

Summary

QXO beats Park-Ohio on 9 of the 15 factors compared between the two stocks.

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.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.