DCI vs PH

For growth investors, Donaldson Company, Inc.

(DCI) is the stronger pick with 2. 9% revenue growth year-over-year, versus -0. 4% for Parker-Hannifin Corporation (PH). Donaldson Company, Inc. (DCI) offers the better valuation at 28. 7x trailing P/E (22. 0x forward), making it the more compelling value choice. Analysts rate Parker-Hannifin Corporation (PH) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Donaldson Company, Inc.

(DCI) is the cheapest at 28. 7x versus Parker-Hannifin Corporation at 33. 3x. On forward P/E, Donaldson Company, Inc. is actually cheaper at 22. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Parker-Hannifin Corporation wins at 1. 22x versus Donaldson Company, Inc. 's 2. 50x — a reasonable growth-adjusted valuation.

Over the past 5 years, Parker-Hannifin Corporation (PH) delivered a total return of +194.

8%, compared to +44. 3% for Donaldson Company, Inc. (DCI). Over 10 years, the gap is even starker: PH returned +741. 1% versus DCI's +198. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Donaldson Company, Inc.

(DCI) is the lower-risk stock at 0. 97β versus Parker-Hannifin Corporation's 1. 00β — meaning PH is approximately 2% more volatile than DCI relative to the S&P 500. On balance sheet safety, Donaldson Company, Inc. (DCI) carries a lower debt/equity ratio of 50% versus 70% for Parker-Hannifin Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Donaldson Company, Inc.

(DCI) is pulling ahead at 2. 9% versus -0. 4% for Parker-Hannifin Corporation (PH). On earnings-per-share growth, the picture is similar: Parker-Hannifin Corporation grew EPS 24. 2% year-over-year, compared to -9. 8% for Donaldson Company, Inc.. Over a 3-year CAGR, PH leads at 7. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Parker-Hannifin Corporation (PH) is the more profitable company, earning 17.

8% net margin versus 9. 9% for Donaldson Company, Inc. — meaning it keeps 17. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PH leads at 20. 5% versus 15. 1% for DCI. At the gross margin level — before operating expenses — PH leads at 36. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Parker-Hannifin Corporation (PH) is the more undervalued stock at a PEG of 1. 22x versus Donaldson Company, Inc. 's 2. 50x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Donaldson Company, Inc. (DCI) trades at 22. 0x forward P/E versus 29. 1x for Parker-Hannifin Corporation — 7. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DCI: 17. 7% to $103. 20.

All stocks in this comparison pay dividends.

Donaldson Company, Inc. (DCI) offers the highest yield at 1. 2%, versus 0. 7% for Parker-Hannifin Corporation (PH).

For long-horizon retirement investors, Parker-Hannifin Corporation (PH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

00), 0. 7% yield, +741. 1% 10Y return). Both have compounded well over 10 years (PH: +741. 1%, DCI: +198. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.