Financial Review: Omnitek Engineering (OTCMKTS:OMTK) and Gorman-Rupp (NYSE:GRC)

Gorman-Rupp (NYSE:GRC) and Omnitek Engineering (OTCMKTS:OMTK) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

59.3% of Gorman-Rupp shares are owned by institutional investors. 7.4% of Gorman-Rupp shares are owned by insiders. Comparatively, 45.5% of Omnitek Engineering shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Gorman-Rupp and Omnitek Engineering, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gorman-Rupp	0	0	1	0	3.00
Omnitek Engineering	0	0	0	0	0.00

Earnings & Valuation

This table compares Gorman-Rupp and Omnitek Engineering”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gorman-Rupp	$659.67 million	2.08	$40.12 million	$1.91	27.35
Omnitek Engineering	$1.02 million	0.22	-$170,000.00	$0.02	0.50

Gorman-Rupp has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering is trading at a lower price-to-earnings ratio than Gorman-Rupp, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Gorman-Rupp has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Omnitek Engineering has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500.

Profitability

This table compares Gorman-Rupp and Omnitek Engineering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gorman-Rupp	7.41%	13.49%	6.10%
Omnitek Engineering	18.80%	-22.26%	28.98%

Summary

Gorman-Rupp beats Omnitek Engineering on 10 of the 13 factors compared between the two stocks.

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.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.