Reviewing Enerpac Tool Group (NYSE:EPAC) and Hurco Companies (NASDAQ:HURC)

Hurco Companies (NASDAQ:HURC) and Enerpac Tool Group (NYSE:EPAC) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

This table compares Hurco Companies and Enerpac Tool Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hurco Companies	-10.58%	-9.54%	-7.33%
Enerpac Tool Group	15.47%	24.61%	12.48%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hurco Companies and Enerpac Tool Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hurco Companies	0	0	0	0	0.00
Enerpac Tool Group	0	0	1	0	3.00

Enerpac Tool Group has a consensus price target of $53.00, suggesting a potential upside of 22.94%. Given Enerpac Tool Group’s stronger consensus rating and higher possible upside, analysts plainly believe Enerpac Tool Group is more favorable than Hurco Companies.

Valuation & Earnings

This table compares Hurco Companies and Enerpac Tool Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hurco Companies	$186.58 million	0.55	-$16.61 million	($2.99)	-5.27
Enerpac Tool Group	$599.83 million	3.89	$85.75 million	$1.69	25.51

Enerpac Tool Group has higher revenue and earnings than Hurco Companies. Hurco Companies is trading at a lower price-to-earnings ratio than Enerpac Tool Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.4% of Hurco Companies shares are held by institutional investors. Comparatively, 97.7% of Enerpac Tool Group shares are held by institutional investors. 8.7% of Hurco Companies shares are held by insiders. Comparatively, 1.1% of Enerpac Tool Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Hurco Companies has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Enerpac Tool Group has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Summary

Enerpac Tool Group beats Hurco Companies on 13 of the 14 factors compared between the two stocks.

About Hurco Companies

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide. Its principal products include general-purpose computerized machine tools, including vertical and horizontal machining centers, turning centers, and toolroom machines. The company also provides computer control systems and related software for press brake applications. In addition, it offers machine tool components, automation integration equipment, and solutions for job shops; and software options, control upgrades, and accessories and replacement parts for its products, as well as customer service, training, and applications support services. Further, the company provides Autobend computer control systems for press brake machines. It serves independent job shops and specialized short-run production applications within large manufacturing operations, as well as precision tool, die, and mold manufacturers in aerospace, defense, medical equipment, energy, automotive/transportation, electronics, and computer industries. The company sells its products under the Hurco, Milltronics, and Takumi brands through independent agents and distributors, as well as through its direct sales and service organizations. Hurco Companies, Inc. was incorporated in 1968 and is headquartered in Indianapolis, Indiana.

About Enerpac Tool Group

Enerpac Tool Group Corp. manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, France, and internationally. It operates through Industrial Tools & Services and Other segments. The Industrial Tools & Services segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, alternative and renewable energy, civil construction, and other markets. It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products. This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands. The Other segment designs and manufactures synthetic ropes and biomedical textiles. The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp. in January 2020. Enerpac Tool Group Corp. was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.