Top 15 Industrial Stocks, Ranked by Marvin Scores
Marvin's rules picked 15 industrial stocks across five related industries. Douglas Dynamics, JBT Marel and Global Industrial score highest overall, while a few names at the bottom of the list show weak profits.
Industrial companies make or sell the equipment, parts and services that other businesses use to run factories, build things and keep operations going. This list covers five related areas: distribution, infrastructure operations, machinery, pollution and treatment controls, and specialty products.
Marvin's rules chose and ordered these 15 stocks. The Overall score compares each company with others in its own industry, so a high score means a company looks strong against its industry peers. It does not say how the company compares with firms in other industries.
Keep in mind that the figures below are snapshots. Growth, margins and debt change from year to year, and a missing figure means Marvin has no data for it. This guide is general information, not advice to buy or sell anything.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size threshold. It then ranked them by Marvin scores, which run from zero to one hundred and are measured against each company's own industry. The list covers five related industries, puts the highest Overall score first, and caps how many stocks any one industry can contribute. A company ranked lower may have fewer strengths, or weaker data, than its industry peers.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The 5 related industries in this group (Industrial - Distribution, Industrial - Infrastructure Operations, Industrial - Machinery, Industrial - Pollution & Treatment Controls, Industrial - Specialties), highest Overall score first; at most 4 per industry.
The stocks, one by one
Douglas Dynamics, Inc. PLOW
Douglas Dynamics has the highest Overall score on this list at 96. Revenue growth of 15.4%, an operating margin of 11.3% and return on equity of 17.5% suggest healthy growth and decent profitability. Caution: its debt-to-equity figure is not available, so its debt load can't be checked here.
JBT Marel Corporation JBTM
JBT Marel has an Overall score of 95. Revenue growth was very large at 121.3%, but the operating margin of 7.3% and return on equity of 4.3% are fairly modest. Caution: free cash flow margin is missing, and one year of growth does not show a lasting pattern.
Global Industrial Co GIC
Global Industrial Co scores 94 Overall, with a Quality score of 86. Return on equity of 25.4% is strong, while revenue growth of 4.8% is slow and steady. Caution: operating margin is only 8.1%, and no debt-to-equity figure is available.
Graco Inc. GGG
Graco stands out for profitability: an operating margin of 28.1% and a free cash flow margin of 27.8% are both high, and its Quality score is 94. Caution: revenue growth was a modest 5.8%, and its Opportunity score is only 67.
Parker-Hannifin Corporation PH
Parker-Hannifin has strong margins, with an operating margin of 23.6% and a free cash flow margin of 18.2%, plus return on equity of 23.7%. Debt-to-equity of 0.57 looks moderate. Caution: revenue growth was only 8.3%, so expansion is steady rather than fast.
Applied Industrial Technologies, Inc. AIT
Applied Industrial Technologies has a Quality score of 95, helped by return on equity of 22.3% and low debt-to-equity of 0.26. Revenue growth was 8.8%. Caution: its Opportunity score of 59 is lower, and its operating margin of 11.1% is only moderate.
MSC Industrial Direct Co., Inc. MSM
MSC Industrial Direct has very low debt, with debt-to-equity of 0.10, and a gross margin of 40.8%. Return on equity is 16.3%. Caution: revenue growth was -1.3%, a slight decline, and the operating margin of 8.5% is modest.
CSW Industrials, Inc. CSW
CSW Industrials combines revenue growth of 23.3% with a gross margin of 42.4% and an operating margin of 16.5%, a healthy mix of growth and profit. Caution: return on equity is only 11.3%, and debt-to-equity of 0.87 is the highest among the mid-ranked industrial names.
W.W. Grainger, Inc. GWW
W.W. Grainger has a Quality score of 90 and a very high return on equity of 45.3%, with an operating margin of 14.6%. Caution: revenue growth was just 4.5%, and its Opportunity score of 45 is low compared with its Quality score.
Veralto Corporation VLTO
Veralto has a high gross margin of 59.9%, an operating margin of 23.1% and return on equity of 32.2%, signs of a very profitable business. Caution: debt-to-equity of 0.96 is on the higher side, and its Opportunity score is only 52.
AZZ Inc. AZZ
AZZ has an operating margin of 16.5% and a free cash flow margin of 12.3%, with debt-to-equity of 0.40, which is fairly low. Caution: revenue growth was just 4.6%, return on equity was 11.8%, and the gross margin of 24.3% is thin next to peers on this list.
CECO Environmental Corp. CECO
CECO Environmental grew revenue quickly, at 38.8%, and has an Opportunity score of 91. Caution: it is not yet profitable, with an operating margin of -0.6% and return on equity of -1.5%, which pulls its Quality score down to 43.
Energy Recovery, Inc. ERII
Energy Recovery has a high gross margin of 64.0% and a free cash flow margin of 32.0%, so it turns much of its revenue into cash. Caution: revenue growth was -6.9%, a decline, and its Opportunity score is just 6.
Montauk Renewables, Inc. MNTK
Montauk Renewables has an Overall score of 26. Revenue growth was 0.4%, nearly flat, and the operating margin of 0.6% is close to zero. Caution: the free cash flow margin of -44.1% shows heavy cash outflow, and gross margin data is missing.
PureCycle Technologies, Inc. PCT
PureCycle Technologies has the lowest Overall score here, 7. Its operating margin of -1316.8% and return on equity of -1437.3% are deeply negative, meaning large losses relative to its business. Caution: growth, gross margin, free cash flow and debt data are all missing.
Common questions
What does the Overall score mean?
It is a Marvin score on a scale from zero to one hundred that blends business quality and opportunity. It compares a company with others in its own industry today. It is not a forecast and not a recommendation.
Why are some industrial stocks on this list scored so low?
The list includes every company the rules selected, ranked from highest to lowest. Companies near the bottom, such as PureCycle Technologies and Montauk Renewables, show weak profits or heavy cash outflow in the data, which pulls their scores down.
Should I only look at the highest-ranked stock?
No. A ranking is a starting point for research. Check how a company's growth, margins and debt fit your own goals, remember that scores are relative to each industry, and consider the business beyond these figures.
Keep reading
- Top 15 Machinery Industrial Stocks, Ranked by Marvin Scores
- Top 15 Industrials Companies With the Strongest Businesses
- Top 15 Industrials Stocks Ranked by Marvin Scores
- Top 15 Industrials Stocks Ranked by Marvin Opportunity Score
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.