Graco (NYSE:GGG) & Enovis (NYSE:ENOV) Critical Survey

Graco (NYSE:GGGGet Rating) and Enovis (NYSE:ENOVGet Rating) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares Graco and Enovis’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Graco $1.99 billion 5.56 $439.87 million $2.52 25.88
Enovis $3.85 billion 0.96 $71.66 million $1.38 50.12

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

Profitability

This table compares Graco and Enovis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graco 22.13% 27.74% 18.63%
Enovis 1.86% 7.41% 4.14%

Risk & Volatility

Graco has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Enovis has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Insider and Institutional Ownership

83.5% of Graco shares are owned by institutional investors. Comparatively, 92.0% of Enovis shares are owned by institutional investors. 3.5% of Graco shares are owned by company insiders. Comparatively, 8.2% of Enovis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Graco and Enovis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Graco 0 2 3 0 2.60
Enovis 0 0 0 0 N/A

Graco presently has a consensus price target of $81.50, indicating a potential upside of 24.96%. Given Graco’s higher possible upside, equities research analysts plainly believe Graco is more favorable than Enovis.

Summary

Graco beats Enovis on 8 of the 13 factors compared between the two stocks.

Graco Company Profile (Get Rating)

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The company's Industrial segment offers proportioning systems to spray polyurethane foam and polyurea coatings; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions. It also provides liquid finishing equipment; paint circulating and supply pumps; paint circulating advanced control systems; plural component coating proportioners; spare parts and accessories; and powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The company's Process segment offers pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. The company's Contractor segment offers sprayers to apply paint to walls and other structures; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. It sells its products through distributors, original equipment manufacturers, and home center channels; and directly to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.

Enovis Company Profile (Get Rating)

Enovis Corporation operates as a medical technology company worldwide. It develops, manufactures, and distributes medical device products used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events, and sports related injuries. It offers rigid and soft orthopedic bracings, hot and cold therapy products, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management, and physical therapy products; and a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger. Enovis Corporation sells its products through independent distributors, such as healthcare professionals, consumer retail stores, and pharmacies; and directly under the DJO brand. The company was formerly known as Colfax Corporation. Enovis Corporation is headquartered in Wilmington, Delaware.

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