Graham Corporation (GHM) vs Tennant Company (TNC)

Graham Corporation and Tennant Company are both Specialty Industrial Machinery companies. Graham Corporation and Tennant Company are of similar size ($1.1B and $1.0B). Tennant Company trades at the lower P/E: 65.1× against 82.3×. Graham Corporation grew revenue faster over the last twelve months: 21.2% against −2.91%. Graham Corporation has the higher net margin (4.53% vs 1.50%) and the higher return on invested capital (5.37% vs 2.98%). Both pay a dividend; Graham Corporation yields more (4.94% vs 1.10%). Across the 22 metrics below, Graham Corporation leads on 12 and Tennant Company on 10.

Valuation

Metric GHM TNC Specialty Industrial Machinery median
P/E 82.28 65.13 29.62
P/S 3.87 0.94 2.77
P/B 5.26 2.14 3.04
Price to free cash flow n/m n/m 23.81
EV/EBITDA 41.07 14.44 16.05
EV/Sales 3.78 1.17 2.94
Earnings yield 1.22% 1.54% 3.08%
Free cash flow yield (0.58%) (0.12%) 3.12%

Profitability

Metric GHM TNC Specialty Industrial Machinery median
Gross margin 23.29% 38.77% 35.90%
Operating margin 5.44% 3.20% 11.22%
Net margin 4.53% 1.50% 7.80%
Free cash flow margin (2.24%) (0.10%) 9.51%
Return on equity 7.49% 3.08% 11.10%
Return on assets 3.83% 1.46% 4.63%
Return on invested capital 5.37% 2.98% 5.37%

Growth

Metric GHM TNC Specialty Industrial Machinery median
Revenue growth (TTM) 21.22% (2.91%) 6.45%
EPS growth (last fiscal year) 0.90% (46.12%) —
Revenue growth, 5-year CAGR 20.27% 3.75% 8.31%
Net income growth, 5-year CAGR 39.41% 5.38% 5.04%

Health

Metric GHM TNC Specialty Industrial Machinery median
Debt to equity 0.00 0.67 0.35
Current ratio 1.23 2.04 2.11
Net debt to EBITDA 0.27 1.32 1.32

Dividend

Metric GHM TNC Specialty Industrial Machinery median
Dividend yield 4.94% 1.10% 1.12%
Payout ratio 0.00 0.21 0.17

Size

Metric GHM TNC Specialty Industrial Machinery median
Market cap 1.03b 1.13b 1.97b

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