Analyzing Keyence (OTCMKTS:KYCCF) & Gorman-Rupp (NYSE:GRC)

Gorman-Rupp (NYSE:GRC) and Keyence (OTCMKTS:KYCCF) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gorman-Rupp	10.20%	17.13%	8.61%
Keyence	N/A	N/A	N/A

Risk and Volatility

Gorman-Rupp has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Keyence has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

59.3% of Gorman-Rupp shares are owned by institutional investors. 11.6% of Gorman-Rupp shares are owned by 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.

Valuation & Earnings

This table compares Gorman-Rupp and Keyence”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gorman-Rupp	$682.39 million	2.72	$53.02 million	$2.80	25.07
Keyence	$7.31 billion	15.49	$2.78 billion	$3.60	129.67

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Gorman-Rupp and Keyence, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gorman-Rupp	0	2	1	0	2.33
Keyence	0	0	2	2	3.50

Summary

Keyence beats Gorman-Rupp on 8 of the 13 factors compared between the two stocks.

About Gorman-Rupp

Gorman-Rupp is a manufacturer of pumps and related pumping systems. Its products include self-priming and standard centrifugal pumps, submersible pumps, rotary gear pumps, diaphragm pumps and engine-driven units, serving applications that require the movement of water and other fluids. The company’s products are used in markets including municipal water and wastewater, construction, industrial processing, agriculture, petroleum and fire protection. Gorman-Rupp serves customers in the United States and internationally.

About Keyence

Keyence Corporation develops and sells factory-automation equipment used to monitor, inspect and improve manufacturing processes. Its products include sensors, measuring instruments, machine-vision systems, laser markers, microscopes and programmable logic controllers. Founded in Japan in 1974, the company serves manufacturers across a range of industries, including automotive, electronics, semiconductor and pharmaceutical production. Keyence sells its products internationally through a global sales and support network.