Graham (NYSE:GHM – Get Free Report) and Ascent Industries (NASDAQ:ACNT – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
69.5% of Graham shares are held by institutional investors. Comparatively, 26.1% of Ascent Industries shares are held by institutional investors. 6.0% of Graham shares are held by insiders. Comparatively, 9.3% of Ascent Industries shares are held by 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.
Risk & Volatility
Graham has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Ascent Industries has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Graham | 0 | 0 | 3 | 1 | 3.25 |
| Ascent Industries | 1 | 0 | 0 | 0 | 1.00 |
Graham currently has a consensus price target of $60.00, suggesting a potential upside of 6.74%. Given Graham’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Graham is more favorable than Ascent Industries.
Profitability
This table compares Graham and Ascent Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Graham | 6.43% | 12.83% | 5.85% |
| Ascent Industries | -2.51% | -2.52% | -1.63% |
Valuation and Earnings
This table compares Graham and Ascent Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Graham | $209.90 million | 2.94 | $12.23 million | $1.26 | 44.61 |
| Ascent Industries | $177.87 million | 0.66 | -$13.60 million | ($0.29) | -43.45 |
Graham has higher revenue and earnings than Ascent Industries. Ascent Industries is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.
Summary
Graham beats Ascent Industries on 14 of the 15 factors compared between the two stocks.
About Graham
Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.
About Ascent Industries
Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.
Receive News & Ratings for Graham Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Graham and related companies with MarketBeat.com's FREE daily email newsletter.
