Financial Contrast: Donaldson (NYSE:DCI) versus International Baler (OTCMKTS:IBAL)

International Baler (OTCMKTS:IBAL) and Donaldson (NYSE:DCI) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Profitability

This table compares International Baler and Donaldson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Baler	N/A	N/A	N/A
Donaldson	9.94%	28.86%	14.63%

Valuation and Earnings

This table compares International Baler and Donaldson”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Baler	N/A	N/A	N/A	N/A	N/A
Donaldson	$3.59 billion	2.34	$414.00 million	$2.98	24.20

Donaldson has higher revenue and earnings than International Baler.

Analyst Recommendations

This is a breakdown of recent recommendations for International Baler and Donaldson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Baler	0	0	0	0	0.00
Donaldson	1	1	1	0	2.00

Donaldson has a consensus price target of $70.00, indicating a potential downside of 2.92%. Given Donaldson’s stronger consensus rating and higher probable upside, analysts clearly believe Donaldson is more favorable than International Baler.

Insider and Institutional Ownership

82.8% of Donaldson shares are owned by institutional investors. 4.2% of International Baler shares are owned by insiders. Comparatively, 2.7% of Donaldson 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.

Summary

Donaldson beats International Baler on 8 of the 9 factors compared between the two stocks.

About International Baler

International Baler Corporation manufactures and sells baling equipment to compress various materials into bales for handling, shipping, disposal, storage, and recycling. The company offers general purpose horizontal and vertical balers for compaction of paper, corrugated boxes, and miscellaneous solid waste materials; and specialty balers, including scrap metal, drum crusher, textile, and double chamber balers that are used for textile materials, used clothing, aluminum cans, 55-gallon drums, and synthetic rubber. It also provides accessory equipment comprising conveyors, which carry waste from floor level to the top of horizontal balers; extended hoppers on such balers; rufflers, which break up material; electronic start/stop controls; hydraulic oil coolers and cleaners; fluffers; bale tying machines; and plastic bottle piercers, as well as service and repair work to general purpose and specialty balers. The company sells its products to waste producing retailers, manufacturing and fabricating plants, bulk material producers, solid waste recycling facilities, manufacturers of synthetic rubber and polymers, plastic and paper recycling facilities, textile and paper mills, power generating facilities, cotton gins, supermarkets and other retail outlets, and municipalities. In addition, the company markets its products through sales force, manufacturer's representatives, and dealers in the United States, Europe, the Far East, South America, and internationally. The company was formerly known as Waste Technology Corporation and changed its name to International Baler Corporation in March 2009. International Baler Corporation was founded in 1946 and is based in Jacksonville, Florida. International Baler Corporation is a subsidiary of Avis Industrial Corporation.

About Donaldson

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and transportation markets; and to independent distributors, and OEM dealer networks. The company's Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes. This segment sells its products to various distributors, OEMs, and end-users. Its Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment, that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users. The company was founded in 1915 and is headquartered in Bloomington, Minnesota.