Head to Head Review: Ingersoll Rand (NYSE:IR) vs. Burnham (OTCMKTS:BURCA)

Ingersoll Rand (NYSE:IR) and Burnham (OTCMKTS:BURCA) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Risk & Volatility

Ingersoll Rand has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Burnham has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Profitability

This table compares Ingersoll Rand and Burnham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ingersoll Rand	7.10%	12.12%	6.89%
Burnham	5.93%	13.16%	7.64%

Earnings & Valuation

This table compares Ingersoll Rand and Burnham”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingersoll Rand	$7.24 billion	4.24	$838.60 million	$1.28	60.26
Burnham	$270.18 million	0.31	$11.95 million	$3.48	6.97

Ingersoll Rand has higher revenue and earnings than Burnham. Burnham is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.3% of Ingersoll Rand shares are held by institutional investors. Comparatively, 1.5% of Burnham shares are held by institutional investors. 0.6% of Ingersoll Rand shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Burnham pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. Ingersoll Rand pays out 6.3% of its earnings in the form of a dividend. Burnham pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Ingersoll Rand and Burnham, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingersoll Rand	0	6	6	0	2.50
Burnham	0	0	0	0	0.00

Ingersoll Rand currently has a consensus target price of $98.00, indicating a potential upside of 27.06%. Given Ingersoll Rand’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ingersoll Rand is more favorable than Burnham.

Summary

Ingersoll Rand beats Burnham on 12 of the 16 factors compared between the two stocks.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.

About Burnham

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.