Gorman-Rupp (GRC) and Its Peers Financial Analysis

Gorman-Rupp (NYSE:GRC) is one of 436 public companies in the “Machinery” industry, but how does it compare to its rivals? We will compare Gorman-Rupp to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Dividends

Gorman-Rupp pays an annual dividend of $0.76 per share and has a dividend yield of 1.1%. Gorman-Rupp pays out 27.1% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend. Gorman-Rupp has increased its dividend for 52 consecutive years. Gorman-Rupp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Gorman-Rupp has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Gorman-Rupp’s rivals have a beta of 5.12, indicating that their average share price is 412% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gorman-Rupp and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gorman-Rupp	$682.39 million	$53.02 million	24.99
Gorman-Rupp Competitors	$4.62 billion	$362.62 million	6.35

Gorman-Rupp’s rivals have higher revenue and earnings than Gorman-Rupp. Gorman-Rupp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

59.3% of Gorman-Rupp shares are held by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are held by institutional investors. 11.6% of Gorman-Rupp shares are held by company insiders. Comparatively, 14.1% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Gorman-Rupp and its rivals’ 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%
Gorman-Rupp Competitors	-1,035.50%	-36.21%	-0.24%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gorman-Rupp and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gorman-Rupp	0	2	1	0	2.33
Gorman-Rupp Competitors	4214	14730	18258	809	2.41

As a group, “Machinery” companies have a potential upside of 30.43%. Given Gorman-Rupp’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Gorman-Rupp has less favorable growth aspects than its rivals.

Summary

Gorman-Rupp rivals beat Gorman-Rupp on 10 of the 15 factors compared.

Gorman-Rupp Company Profile

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.