Head to Head Analysis: Enpro (NYSE:NPO) versus Twin Disc (NASDAQ:TWIN)

Twin Disc (NASDAQ:TWIN) and Enpro (NYSE:NPO) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Dividends

Twin Disc pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Enpro pays an annual dividend of $1.28 per share and has a dividend yield of 0.4%. Twin Disc pays out 8.4% of its earnings in the form of a dividend. Enpro pays out 62.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Enpro has raised its dividend for 2 consecutive years. Twin Disc is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Twin Disc has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Enpro has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Profitability

This table compares Twin Disc and Enpro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	9.06%	6.78%	3.31%
Enpro	3.60%	11.83%	7.10%

Earnings and Valuation

This table compares Twin Disc and Enpro”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Disc	$381.27 million	0.92	$27.08 million	$2.38	10.18
Enpro	$1.22 billion	5.02	$40.50 million	$2.05	141.45

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Twin Disc and Enpro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	0	2	1	0	2.33
Enpro	0	1	3	1	3.00

Twin Disc currently has a consensus price target of $30.00, suggesting a potential upside of 23.86%. Enpro has a consensus price target of $358.33, suggesting a potential upside of 23.57%. Given Twin Disc’s higher possible upside, equities analysts plainly believe Twin Disc is more favorable than Enpro.

Insider & Institutional Ownership

65.2% of Twin Disc shares are owned by institutional investors. Comparatively, 98.3% of Enpro shares are owned by institutional investors. 22.1% of Twin Disc shares are owned by company insiders. Comparatively, 1.6% of Enpro shares are owned by company 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.

Summary

Enpro beats Twin Disc on 12 of the 18 factors compared between the two stocks.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.

About Enpro

Enpro Inc. design, develops, manufactures, and markets proprietary, value-added products and solutions to safeguard critical environments in the United States, Europe, and internationally. It operates through two segments, Sealing Technologies and Advanced Surface Technologies. The Sealing Technologies segment offers single-use hygienic seals, tubing, components and assemblies; metallic, non-metallic, and composite material gaskets; dynamic seals; compression packing; hydraulic components; expansion joints; and wall penetration products for chemical and petrochemical processing, pulp and paper processing, nuclear energy, hydrogen, natural gas, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, commercial vehicle, aerospace, medical, filtration, and semiconductor fabrication industries. The Advanced Surface Technologies segment offers cleaning, coating, testing, refurbishment, and verification services for critical components and assemblies used in semiconductor manufacturing equipment, as well as for critical applications in the space, aerospace, and defense markets; and specialized optical filters and thin-film coatings for various applications in the industrial technology, life sciences, and semiconductor markets. The company was formerly known as EnPro Industries, Inc. and changed its name to Enpro Inc. in December 2023. Enpro Inc. was incorporated in 2002 and is headquartered in Charlotte, North Carolina.