Japan Steel Works (OTCMKTS:JPSWY) & Graham (NYSE:GHM) Head-To-Head Comparison

Japan Steel Works (OTCMKTS:JPSWY) and Graham (NYSE:GHM) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Volatility and Risk

Japan Steel Works has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Graham has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Earnings and Valuation

This table compares Japan Steel Works and Graham”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Steel Works	$1.63 billion	2.64	$118.54 million	$0.93	31.51
Graham	$237.56 million	4.87	$12.23 million	$1.35	73.36

Japan Steel Works has higher revenue and earnings than Graham. Japan Steel Works is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.

Dividends

Japan Steel Works pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Graham pays an annual dividend of $0.44 per share and has a dividend yield of 0.4%. Japan Steel Works pays out 17.2% of its earnings in the form of a dividend. Graham pays out 32.6% 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. Japan Steel Works is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Japan Steel Works and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Steel Works	7.41%	8.81%	4.39%
Graham	6.28%	13.26%	6.07%

Insider & Institutional Ownership

69.5% of Graham shares are held by institutional investors. 6.0% of Graham 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.

Analyst Ratings

This is a summary of current recommendations for Japan Steel Works and Graham, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Steel Works	0	1	1	0	2.50
Graham	0	2	3	1	2.83

Graham has a consensus target price of $81.67, suggesting a potential downside of 17.54%. Given Graham’s stronger consensus rating and higher probable upside, analysts plainly believe Graham is more favorable than Japan Steel Works.

Summary

Graham beats Japan Steel Works on 12 of the 17 factors compared between the two stocks.

About Japan Steel Works

The Japan Steel Works, Ltd. engages in the provision of industrial machinery products, and material and engineering business in Japan and internationally. It operates through Industrial Machinery Products Business, and Material and Engineering Business segments. The Industrial Machinery Products Business segment offers plastic production and processing machinery, such as pelletizers, film and sheet manufacturing equipment, and twin-screw extruders; molding machines including plastic injection molding, magnesium injection molding, and blow molding machines; and other machinery consists of excimer laser annealing systems, defense equipment, railway products, hot press devices, vacuum laminators, and deposit systems, as well as after-sales services for plastics, mobility, high-performance batteries, electronic devices, and defense applications. The Material and Engineering Business segment provides steel casting and forgings, such as reactor and steam generator parts, rotor shafts, turbine casings, die steel, steel rolls for steel manufacturing, and clad steel plates; and engineering and other services, including design and analysis, welded structures, inspection and survey, and hydrogen pressure accumulators and related products for use in power generation equipment, renewable energy, and infrastructure applications. The company offers photonics, composite materials, and metallic materials for use in semiconductors and electronic devices, cameras and sensing devices, aircraft and mobility components, and electronic parts. The Japan Steel Works, Ltd. was founded in 1907 and is headquartered in Shinagawa, Japan.

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.