Graco (NYSE:GGG) versus Kone Oyj (OTCMKTS:KNYJY) Head-To-Head Analysis

Graco (NYSE:GGG – Get Free Report) and Kone Oyj (OTCMKTS:KNYJY – Get Free Report) are both large-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Dividends

Graco pays an annual dividend of $1.18 per share and has a dividend yield of 1.5%. Kone Oyj pays an annual dividend of $0.45 per share and has a dividend yield of 1.6%. Graco pays out 37.1% of its earnings in the form of a dividend. Kone Oyj pays out 42.5% 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. Graco has raised its dividend for 29 consecutive years.

Profitability

This table compares Graco and Kone Oyj’s net margins, return on equity and return on assets.

Earnings & Valuation

This table compares Graco and Kone Oyj”s top-line revenue, earnings per share and valuation.

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

Volatility & Risk

Graco has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Kone Oyj has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Graco and Kone Oyj, as provided by MarketBeat.

Graco currently has a consensus target price of $95.00, suggesting a potential upside of 22.26%. Given Graco’s stronger consensus rating and higher possible upside, equities analysts plainly believe Graco is more favorable than Kone Oyj.

Institutional & Insider Ownership

93.9% of Graco shares are owned by institutional investors. 2.2% of Graco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Graco beats Kone Oyj on 12 of the 18 factors compared between the two stocks.

About Graco

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Graco Inc. designs, manufactures, and markets systems and equipment used to move, measure, control, dispense, and spray fluid and powder materials worldwide. The Contractor segment offers sprayers to apply paint to walls and other structures; two-component proportioning systems that are used to spray polyurethane foam and polyurea coatings; and viscous coatings to roofs, as well as markings on roads, parking lots, athletic fields, and floors. The Industrial segment provides liquid finishing equipment, paint circulating and supply pumps, paint circulating advanced control systems, plural component coating proportioners, and accessories and spare parts; equipment that pumps, meters, mixes and dispenses sealant, adhesive, and composite materials; and gel-coat equipment, chop and wet-out systems, resin transfer molding systems and applicators, and precision dispensing solutions. It also offers powder finishing products to coat powder finishing on metals under the Gema and SAT brands. The Process segment provides pumps to move and dispense chemicals, water, wastewater, petroleum, food, lubricants, and other fluids; pressure valves used in the oil and natural gas industry, other industrial processes, and research facilities; and chemical injection pumping solutions for injection of chemicals into producing oil wells and pipelines. It also supplies pumps, hose reels, meters, valves, and accessories for fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers; and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators in industrial and commercial equipment, compressors, turbines, and on- and off-road vehicles. It sells its products through distributors, original equipment manufacturers, and home center channels, as well as to end-users. The company was incorporated in 1926 and is headquartered in Minneapolis, Minnesota.

About Kone Oyj

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KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.