Head to Head Comparison: Luxfer (NYSE:LXFR) versus Parker-Hannifin (NYSE:PH)

Parker-Hannifin (NYSE:PH) and Luxfer (NYSE:LXFR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Insider and Institutional Ownership

82.4% of Parker-Hannifin shares are held by institutional investors. Comparatively, 90.8% of Luxfer shares are held by institutional investors. 0.3% of Parker-Hannifin shares are held by insiders. Comparatively, 1.2% of Luxfer shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Parker-Hannifin pays an annual dividend of $7.20 per share and has a dividend yield of 0.8%. Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 4.5%. Parker-Hannifin pays out 26.3% of its earnings in the form of a dividend. Luxfer pays out 179.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Parker-Hannifin has raised its dividend for 70 consecutive years.

Profitability

This table compares Parker-Hannifin and Luxfer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parker-Hannifin	17.29%	27.56%	12.72%
Luxfer	2.00%	11.61%	6.99%

Earnings & Valuation

This table compares Parker-Hannifin and Luxfer”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parker-Hannifin	$19.85 billion	5.66	$3.53 billion	$27.42	32.47
Luxfer	$384.60 million	0.80	$7.70 million	$0.29	40.02

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

Analyst Ratings

This is a breakdown of current recommendations for Parker-Hannifin and Luxfer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parker-Hannifin	0	5	16	0	2.76
Luxfer	1	1	0	0	1.50

Parker-Hannifin presently has a consensus target price of $995.37, indicating a potential upside of 11.80%. Given Parker-Hannifin’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Parker-Hannifin is more favorable than Luxfer.

Volatility and Risk

Parker-Hannifin has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Luxfer has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Summary

Parker-Hannifin beats Luxfer on 13 of the 17 factors compared between the two stocks.

About Parker-Hannifin

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to ensure purity and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors used in fluid and gas handling; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment. This segment sells its products to original equipment manufacturers (OEMs) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, such as control actuation systems and components, engine build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, avionics, sensors, pneumatic control components, thermal management products, fire detection and suppression systems and components, and wheels and brakes, as well as fluid metering, delivery, and atomization devices. This segment markets its products directly to OEMs and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.