Contrasting Nordson Corporation (NDSN) & Its Rivals

Nordson Corporation (NASDAQ: NDSN) is one of 18 public companies in the “Industrial Machinery” industry, but how does it weigh in compared to its peers? We will compare Nordson Corporation to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations for Nordson Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordson Corporation 0 3 5 0 2.63
Nordson Corporation Competitors 93 397 335 25 2.34

Nordson Corporation currently has a consensus target price of $138.00, indicating a potential upside of 20.40%. As a group, “Industrial Machinery” companies have a potential upside of 9.84%. Given Nordson Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Nordson Corporation is more favorable than its peers.

Insider and Institutional Ownership

65.5% of Nordson Corporation shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are owned by institutional investors. 2.2% of Nordson Corporation shares are owned by company insiders. Comparatively, 12.1% of shares of all “Industrial Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Nordson Corporation has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Nordson Corporation’s peers have a beta of 1.49, indicating that their average stock price is 49% more volatile than the S&P 500.

Profitability

This table compares Nordson Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordson Corporation 14.57% 32.99% 10.73%
Nordson Corporation Competitors -24.03% 10.43% 4.25%

Dividends

Nordson Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. Nordson Corporation pays out 23.9% of its earnings in the form of a dividend. As a group, “Industrial Machinery” companies pay a dividend yield of 1.1% and pay out 34.1% of their earnings in the form of a dividend. Nordson Corporation has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Nordson Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nordson Corporation $2.00 billion $548.73 million 22.83
Nordson Corporation Competitors $696.10 million $107.92 million 46.11

Nordson Corporation has higher revenue and earnings than its peers. Nordson Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Nordson Corporation beats its peers on 10 of the 15 factors compared.

Nordson Corporation Company Profile

Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company’s segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer’s production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.

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