Head-To-Head Review: Gorman-Rupp (NYSE:GRC) & Morgan Advanced Materials (OTCMKTS:MCRUF)

Morgan Advanced Materials (OTCMKTS:MCRUF) and Gorman-Rupp (NYSE:GRC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Profitability

This table compares Morgan Advanced Materials and Gorman-Rupp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Advanced Materials	N/A	N/A	N/A
Gorman-Rupp	7.69%	13.63%	5.99%

Valuation & Earnings

This table compares Morgan Advanced Materials and Gorman-Rupp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Morgan Advanced Materials	$1.41 billion	N/A	$64.28 million	N/A	N/A
Gorman-Rupp	$659.67 million	1.68	$40.12 million	$1.97	21.43

Morgan Advanced Materials has higher revenue and earnings than Gorman-Rupp.

Volatility and Risk

Morgan Advanced Materials has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Gorman-Rupp has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Morgan Advanced Materials and Gorman-Rupp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morgan Advanced Materials	0	1	1	0	2.50
Gorman-Rupp	0	0	0	0	0.00

Institutional and Insider Ownership

59.3% of Gorman-Rupp shares are owned by institutional investors. 11.3% of Gorman-Rupp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Gorman-Rupp beats Morgan Advanced Materials on 6 of the 10 factors compared between the two stocks.

About Morgan Advanced Materials

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.

About Gorman-Rupp

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.