Reviewing ABB Ltd (ABB)’s and The Gorman-Rupp Company (NYSE:GRC)’s results – EN Digest

We are comparing ABB Ltd (NYSE:ABB) and The Gorman-Rupp Company (NYSE:GRC) on their institutional ownership, profitability, risk, analyst recommendations, dividends, earnings and valuation. They both are Diversified Machinery companies, competing one another.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ABB Ltd 27.66B 1.45 1.45B 1.05 18.50
The Gorman-Rupp Company 414.33M 2.09 39.98M 1.53 21.94

Table 1 highlights ABB Ltd and The Gorman-Rupp Company’s top-line revenue, earnings per share (EPS) and valuation. The Gorman-Rupp Company seems to has lower revenue, but higher earnings compared to ABB Ltd. Company that currently has a lower P/E ratio means that it is the more affordable of the two businesses. ABB Ltd is currently more affordable than The Gorman-Rupp Company, because it’s trading at a lower P/E ratio.

Profitability

Table 2 provides us the return on assets, return on equity and net margins of both companies.

Net Margins Return on Equity Return on Assets
ABB Ltd 5.24% 15.9% 5%
The Gorman-Rupp Company 9.65% 9.9% 8.2%

Risk and Volatility

A 1.06 beta indicates that ABB Ltd is 6.00% more volatile compared to S&P 500. The Gorman-Rupp Company’s 0.96 beta is the reason why it is 4.00% less volatile than S&P 500.

Liquidity

ABB Ltd’s Current Ratio and Quick Ratio are 1.2 and 0.9 respectively. The Current Ratio and Quick Ratio of its competitor The Gorman-Rupp Company are 4.8 and 3.3 respectively. The Gorman-Rupp Company therefore has a better chance of paying off short and long-term obligations compared to ABB Ltd.

Dividends

The annual dividend that ABB Ltd pay is $0.81 per share with a dividend yield of 4.29%. The dividend yield for The Gorman-Rupp Company is 1.54% while its annual dividend payout is $0.51 per share.

Analyst Ratings

ABB Ltd and The Gorman-Rupp Company Ratings and Recommendations are available in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
ABB Ltd 1 0 0 1.00
The Gorman-Rupp Company 0 0 0 0.00

Insider and Institutional Ownership

The shares of both ABB Ltd and The Gorman-Rupp Company are owned by institutional investors at 4.5% and 54.4% respectively. On the other hand, insiders held about 17.8% of The Gorman-Rupp Company’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
ABB Ltd -4.77% 1.15% -5.23% -18.89% -19.36% 1.89%
The Gorman-Rupp Company -3.31% -2.78% 0.69% -3.78% 30.91% 3.64%

For the past year ABB Ltd was less bullish than The Gorman-Rupp Company.

Summary

The Gorman-Rupp Company beats ABB Ltd on 10 of the 16 factors.

ABB Ltd manufactures and sells electrification, robotics and motion, power grid, and industrial automation products for utilities, transportation, infrastructure, and industrial customers worldwide. The company provides modular substation packages, distribution automation products, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, low- and medium-voltage switchgears, switches, DIN rail components, and installation materials for building, data center, rail, wind and solar, food and beverage, marine, and oil and gas industries. It also offers motors, generators, variable speed drives, robots and robotics, solar inverters, wind converters, rectifiers, and excitation systems, as well as power quality and protection solutions, electric vehicle fast charging infrastructure solutions, and components and subsystems for railways, and related services for discrete automation, process industries, transportation, and utilities. In addition, the company develops and sells control and plant optimization systems, automation products and solutions, and industry-specific application services for the oil, gas, petrochemicals, metals and minerals, marine and turbocharging, pulp and paper, chemical and pharmaceuticals, and power industries. Further, it manufactures and sells an array of high-voltage products, including switchgears, capacitors, and power transmission systems, as well as power, distribution, and traction transformers; and supplies power and automation products, systems, and service and software solutions for power generation, transmission, and distribution to utility, industry, transportation, and infrastructure customers. The company has a strategic collaboration with IBM to develop industrial artificial intelligence solutions. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems worldwide. The companyÂ’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, bellow, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, military, and other liquid-handling applications, as well as in heating, ventilating, and air conditioning applications. The company markets its products through a network of distributors, manufacturersÂ’ representatives, third-party distributor catalogs, and direct sales. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.



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Source: https://endigest.com/2019/03/11/reviewing-abb-ltd-abbs-and-the-gorman-rupp-company-nysegrcs-results/

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