Nordson (NDSN) vs. International Baler (IBAL) Critical Contrast

Nordson (NASDAQ:NDSN) and International Baler (OTCMKTS:IBAL) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Institutional and Insider Ownership

67.7% of Nordson shares are owned by institutional investors. 2.0% of Nordson shares are owned by insiders. Comparatively, 81.0% of International Baler shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Nordson pays an annual dividend of $4.20 per share and has a dividend yield of 3.3%. International Baler does not pay a dividend. Nordson pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nordson has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of current ratings for Nordson and International Baler, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordson 0 7 4 0 2.36
International Baler 0 0 0 0 N/A

Nordson presently has a consensus price target of $158.00, indicating a potential upside of 23.45%. Given Nordson’s higher probable upside, equities research analysts plainly believe Nordson is more favorable than International Baler.

Profitability

This table compares Nordson and International Baler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordson 16.40% 26.37% 9.82%
International Baler 1.16% 1.37% 1.13%

Earnings & Valuation

This table compares Nordson and International Baler’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nordson $2.07 billion 3.60 $295.80 million $5.37 23.83
International Baler $10.49 million 0.94 $70,000.00 N/A N/A

Nordson has higher revenue and earnings than International Baler.

Volatility and Risk

Nordson has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, International Baler has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.

Summary

Nordson beats International Baler on 12 of the 14 factors compared between the two stocks.

About Nordson

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. Its Adhesive Dispensing Systems segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; and product assembly dispensing, coating, and laminating systems for use in paper and paperboard converting applications, as well as for the manufacture of roll goods. This segment also offers automated adhesive dispensing systems for packaged goods industries; and components and systems used in the thermoplastic melt stream. The company's Advanced Technology Systems segment offers automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, plastic molded syringes, cartridges, tips, fluid connection components, tubing, and catheters to apply and control the flow of adhesives, sealants, lubricants, and biomaterials; and bond testing, and automated optical and X-ray inspection systems for use in semiconductor and printed circuit board industries. Its Industrial Coating Systems segment provides automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The company primarily markets its products through its direct sales force, as well as through distributors and sales representatives worldwide. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.

About International Baler

International Baler Corporation manufactures and sells baling equipment to compress various materials into bales for handling, shipping, disposal, storage, and recycling. The company offers general purpose horizontal and vertical balers for compaction of paper, corrugated boxes, and miscellaneous solid waste materials; and specialty balers, including scrap metal, drum crusher, textile, and double chamber balers that are used for textile materials, used clothing, aluminum cans, 55-gallon drums, and synthetic rubber. It also provides accessory equipment comprising conveyors, which carry waste from floor level to the top of horizontal balers; extended hoppers on such balers; rufflers, which break up material; electronic start/stop controls; hydraulic oil coolers and cleaners; fluffers; bale tying machines; and plastic bottle piercers, as well as service and repair work to general purpose and specialty balers. The company sells its products to waste producing retailers, manufacturing and fabricating plants, bulk material producers, solid waste recycling facilities, manufacturers of synthetic rubber and polymers, plastic and paper recycling facilities, textile and paper mills, power generating facilities, cotton gins, supermarkets and other retail outlets, and municipalities. It markets its products through sales force, manufacturer's representatives, and dealers in the United States, Europe, the Far East, and South America. The company was formerly known as Waste Technology Corporation and changed its name to International Baler Corporation in March 2009. International Baler Corporation was founded in 1975 and is based in Jacksonville, Florida.

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