Reviewing Park-Ohio (PKOH) & Shiloh Industries (SHLO)

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Shiloh Industries (NASDAQ: SHLO) and Park-Ohio (NASDAQ:PKOH) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Shiloh Industries and Park-Ohio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shiloh Industries 0 1 1 0 2.50
Park-Ohio 0 2 0 0 2.00

Shiloh Industries presently has a consensus target price of $10.25, indicating a potential upside of 17.82%. Park-Ohio has a consensus target price of $37.00, indicating a potential downside of 0.80%. Given Shiloh Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Shiloh Industries is more favorable than Park-Ohio.

Earnings and Valuation

This table compares Shiloh Industries 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
Shiloh Industries $1.04 billion 0.20 -$690,000.00 $0.53 16.42
Park-Ohio $1.41 billion 0.33 $28.60 million $3.23 11.55

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

Insider & Institutional Ownership

43.1% of Shiloh Industries shares are owned by institutional investors. Comparatively, 55.8% of Park-Ohio shares are owned by institutional investors. 37.4% of Shiloh Industries shares are owned by insiders. Comparatively, 31.2% of Park-Ohio shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Park-Ohio pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Shiloh Industries does not pay a dividend. Park-Ohio pays out 15.5% of its earnings in the form of a dividend.

Risk and Volatility

Shiloh Industries has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Park-Ohio has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Shiloh Industries 0.56% 6.94% 2.12%
Park-Ohio 1.94% 15.41% 3.84%

Summary

Park-Ohio beats Shiloh Industries on 10 of the 16 factors compared between the two stocks.

About Shiloh Industries

Shiloh Industries, Inc., together with its subsidiaries, provides lightweighting, noise, and vibration solutions to automotive, commercial vehicle, and other industrial markets worldwide. The company produces body systems components, including shock towers, instrument panel/cross car beams, torque boxes, tunnel supports, seat supports, seat back frames, hinge pillars, lift gates, door inners, roof supports/roof panels, dashpanels, body sides, and B and C pillars; and chassis systems components, such as cross members, frame rails, axle carriers, bearing caps, axle covers and housings, clutch housings, PTU covers, axle tubes, rack and pinion housings, steering column housings, knuckles, links, wheel hubs, calipers, master cylinders, steering pumps, brake components, wheel blanks, and flanges. It also produces powertrain systems components comprising planetary carriers, clutch and transmission gear housings, engine valve covers, valve bodies, rocker arm spacers, heat shields, exhaust manifolds, cones, baffles, muffler shells, engine oil pans, transmission fluid pans, front covers, and transmission covers. In addition, the company offers various intermediate steel processing services, such as oiling, leveling, cutting-to-length, multi-blanking, slitting, edge trimming of hot and cold-rolled steel coils, and inventory control services. Further, it provides portfolio of light weighting solutions in aluminum, magnesium, steel, and steel alloys under the BlankLight, CastLight, and StampLight brand names. Additionally, the company designs and manufactures precision blanks, ShilohCore acoustic laminates, aluminum and steel laser welded blanks, complex stampings, modular assemblies, aluminum and magnesium die casting, and precision machined components to original equipment manufacturers (OEMs) and suppliers to the OEMs. Shiloh Industries, Inc. was founded in 1950 and is headquartered in Valley City, Ohio.

About Park-Ohio

Park-Ohio Holdings Corp., through its subsidiaries, provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Asia, Europe, Canada, Mexico, and internationally. The company's Supply Technologies segment offers Total Supply Management solution, including 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, including 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, including locknuts, SPAC nuts, and wheel hardware. The company's Assembly Components segment manufactures aluminum products, high pressure direct fuel injection fuel rails and pipes, and fuel filler pipes, as well as flexible multi-layer plastic and rubber assemblies; and turbo charging hoses and turbo coolant hoses. This segment also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly; and supplies aluminum components. The company's Engineered Products segment designs and manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products primarily for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; provides field services; and offers aerospace and defense structural components, and railcar center plates and draft lugs. The company was founded in 1961 and is headquartered in Cleveland, Ohio.

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