Reviewing Park-Ohio (NASDAQ:PKOH) and QXO (NYSE:QXO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QXO	-5.17%	2.41%	1.20%
Park-Ohio	1.60%	10.55%	2.81%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for QXO and Park-Ohio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	1	1	14	1	2.88
Park-Ohio	0	0	2	1	3.33

QXO currently has a consensus target price of $24.77, indicating a potential upside of 95.09%. Park-Ohio has a consensus target price of $59.00, indicating a potential upside of 35.63%. Given QXO’s higher probable upside, equities analysts clearly believe QXO is more favorable than Park-Ohio.

Insider and Institutional Ownership

58.7% of QXO shares are owned by institutional investors. Comparatively, 51.4% of Park-Ohio shares are owned by institutional investors. 41.0% of QXO shares are owned by company insiders. Comparatively, 31.1% of Park-Ohio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares QXO and Park-Ohio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$6.84 billion	1.93	-$279.40 million	($0.90)	-14.11
Park-Ohio	$1.60 billion	0.39	$23.80 million	$1.88	23.14

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

Risk and Volatility

QXO has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500. Comparatively, Park-Ohio has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

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.