Gorman-Rupp (NYSE:GRC – Get Free Report) and Tennant (NYSE:TNC – Get Free Report) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Profitability
This table compares Gorman-Rupp and Tennant’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gorman-Rupp | 8.45% | 15.08% | 7.18% |
| Tennant | 2.55% | 14.87% | 7.17% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Gorman-Rupp and Tennant, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gorman-Rupp | 0 | 1 | 1 | 1 | 3.00 |
| Tennant | 0 | 2 | 1 | 1 | 2.75 |
Dividends
Gorman-Rupp pays an annual dividend of $0.76 per share and has a dividend yield of 0.9%. Tennant pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. Gorman-Rupp pays out 34.1% of its earnings in the form of a dividend. Tennant pays out 74.7% 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. Gorman-Rupp has raised its dividend for 52 consecutive years and Tennant has raised its dividend for 53 consecutive years. Tennant is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Gorman-Rupp and Tennant”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gorman-Rupp | $695.03 million | 3.21 | $53.02 million | $2.23 | 37.85 |
| Tennant | $1.21 billion | 1.23 | $43.80 million | $1.66 | 52.47 |
Gorman-Rupp has higher earnings, but lower revenue than Tennant. Gorman-Rupp is trading at a lower price-to-earnings ratio than Tennant, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gorman-Rupp has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Tennant has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Insider & Institutional Ownership
59.3% of Gorman-Rupp shares are owned by institutional investors. Comparatively, 93.3% of Tennant shares are owned by institutional investors. 11.6% of Gorman-Rupp shares are owned by company insiders. Comparatively, 3.5% of Tennant shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Gorman-Rupp beats Tennant on 10 of the 16 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 Tennant
Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.
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