Financial Contrast: Nordson (NASDAQ:NDSN) and Omnitek Engineering (OTCMKTS:OMTK)

Omnitek Engineering (OTCMKTS:OMTK) and Nordson (NASDAQ:NDSN) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Institutional and Insider Ownership

72.1% of Nordson shares are held by institutional investors. 45.5% of Omnitek Engineering shares are held by insiders. Comparatively, 0.8% of Nordson shares are held by 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Omnitek Engineering and Nordson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Nordson	0	6	4	1	2.55

Nordson has a consensus target price of $255.75, suggesting a potential upside of 13.50%. Given Nordson’s stronger consensus rating and higher possible upside, analysts clearly believe Nordson is more favorable than Omnitek Engineering.

Profitability

This table compares Omnitek Engineering and Nordson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	7.23%	-8.00%	10.57%
Nordson	16.34%	19.45%	9.55%

Risk & Volatility

Omnitek Engineering has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, Nordson has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares Omnitek Engineering and Nordson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.36	-$170,000.00	$0.01	1.68
Nordson	$2.69 billion	4.71	$467.28 million	$7.96	28.31

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

Summary

Nordson beats Omnitek Engineering on 13 of the 15 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

About Nordson

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through three segments: Industrial Precision Solutions; Medical and Fluid Solutions; and Advanced Technology Solutions. The Industrial Precision Solutions segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic and biopolymer melt stream; precision agriculture spraying solutions; fluid components, such as nozzles, pumps, and filters; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods. It also offers automated and manual dispensing products and systems for cold materials, container coating, liquid finishing, and powder coating, as well as ultraviolet equipment used primarily in curing and drying operations. The Medical and Fluid Solutions segment offers medical devices, including cannulas, catheters, and medical balloons; single-use plastic components; precision manual and semi-automated dispensers; minimally invasive interventional delivery devices; and plastic molded syringes, cartridges, tips, and fluid connection components. The Advanced Technology Solutions segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1909 and is headquartered in Westlake, Ohio.