Graco (NYSE:GGG) & Spirax Group (OTCMKTS:SPXSY) Head-To-Head Analysis

Graco (NYSE:GGG) and Spirax Group (OTCMKTS:SPXSY) are both large-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Valuation and Earnings

This table compares Graco and Spirax Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graco	$2.17 billion	6.39	$486.08 million	$2.82	29.64
Spirax Group	$2.13 billion	6.50	$244.34 million	N/A	N/A

Graco has higher revenue and earnings than Spirax Group.

Volatility & Risk

Graco has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Spirax Group has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Insider & Institutional Ownership

93.9% of Graco shares are held by institutional investors. Comparatively, 0.4% of Spirax Group shares are held by institutional investors. 2.2% of Graco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Graco and Spirax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graco	22.26%	19.05%	15.77%
Spirax Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Graco and Spirax Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graco	0	1	4	0	2.80
Spirax Group	0	1	0	1	3.00

Graco presently has a consensus target price of $94.50, indicating a potential upside of 13.05%. Given Graco’s higher possible upside, research analysts plainly believe Graco is more favorable than Spirax Group.

Dividends

Graco pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Spirax Group pays an annual dividend of $1.45 per share and has a dividend yield of 3.1%. Graco pays out 39.0% of its earnings in the form of a dividend. Graco has increased its dividend for 29 consecutive years.

Summary

Graco beats Spirax Group on 11 of the 16 factors compared between the two stocks.

About Graco

Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The Industrial segment provides liquid finishing equipment, paint circulating and supply pumps, paint circulating advanced control systems, plural component coating proportioners, and accessories and spare parts; 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 offers powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The Process segment provides 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. It sells its products through distributors, original equipment manufacturers, and home center channels, as well as to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.

About Spirax Group

Spirax-Sarco Engineering plc provides engineered solutions it operates through three segments: Steam Thermal Solutions; Electric Thermal Solutions; and Watson-Marlow Fluid Technology Solutions. The company offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating, curing, cooking, drying, cleaning, sterilizing, space heating, humidifying, vacuum packing, and producing hot water; electrical process heating and temperature management solutions, such as industrial heaters and systems, heat tracing, and various component technologies for industrial processes; and peristaltic and niche pumps and associated fluid path technologies, including tubing, and specialty filling systems and products for single-use applications. It serves pharmaceutical and biotechnology, food, beverage, oil, gas, chemical, power generation, healthcare, water and wastewater, buildings, mining and precious metal processing, semiconductor, and transport sectors, as well as original equipment manufacturers. The company sells its products directly, as well as through distributors. It operates in Europe, the Middle East, and Africa; the Asia Pacific; and the Americas. The company was founded in 1888 and is headquartered in Cheltenham, the United Kingdom.