Analyzing Aggreko (OTCMKTS:ARGKF) and Park-Ohio (NASDAQ:PKOH)

Park-Ohio (NASDAQ:PKOH) and Aggreko (OTCMKTS:ARGKF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Park-Ohio and Aggreko, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park-Ohio	0	2	1	0	2.33
Aggreko	0	0	0	0	0.00

Park-Ohio currently has a consensus target price of $59.00, indicating a potential upside of 33.51%. Given Park-Ohio’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Park-Ohio is more favorable than Aggreko.

Profitability

This table compares Park-Ohio and Aggreko’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park-Ohio	1.60%	10.55%	2.81%
Aggreko	N/A	N/A	N/A

Valuation and Earnings

This table compares Park-Ohio and Aggreko”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park-Ohio	$1.60 billion	0.40	$23.80 million	$1.88	23.51
Aggreko	$1.75 billion	1.74	-$142.52 million	$0.28	42.54

Park-Ohio has higher earnings, but lower revenue than Aggreko. Park-Ohio is trading at a lower price-to-earnings ratio than Aggreko, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Park-Ohio has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Aggreko has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Insider and Institutional Ownership

51.4% of Park-Ohio shares are held by institutional investors. 31.1% of Park-Ohio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Park-Ohio beats Aggreko on 10 of the 14 factors compared between the two stocks.

About Park-Ohio

Park-Ohio Holdings Corp. provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Europe, Asia, Mexico, Canada, and internationally. It operates through three segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies segment offers Total Supply Management that comprises engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, such as valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products. This segment also engineers and manufactures precision cold-formed and cold-extruded fasteners, and other products comprising locknuts, SPAC nuts, SPAC bolts, and wheel hardware. The Assembly Components segment offers direct fuel injection fuel rails and pipes, fuel filler pipes, and flexible multi-layer plastic and rubber assemblies; turbo charging and coolant hoses; and value-added services comprising design engineering, machining, and parts assembly. The Engineered Products segment provides engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; field services; and forges aerospace and defense structural components, such as landing gears and struts, as well as rail products comprising railcar center plates and draft lugs. Park-Ohio Holdings Corp. was founded in 1907 and is headquartered in Cleveland, Ohio.

About Aggreko

Aggreko Plc engages in the provision of mobile modular power, temperature control and energy services. It operates through the following segments: Rental Solutions, Power Solutions and Power Solutions Utility. The Rental Solutions segment refers to the transactional business serving a range of sectors in developed markets by providing power, heating, and cooling to a number of customer types who need it quickly and typically for a short period of time. The Power Solutions segment operates in emerging markets which serve both industrial and utility customers with power requirements. The Power Solutions Utility segment delivers longer-term projects providing power to national utility customers. The company was founded in 1962 and is headquartered in Glasgow, the United Kingdom.