Analyzing Palladyne AI (NASDAQ:STRCW) and Graham (NYSE:GHM)

Palladyne AI (NASDAQ:STRCW) and Graham (NYSE:GHM) are both manufacturing companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Palladyne AI and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palladyne AI	N/A	N/A	N/A
Graham	2.60%	5.26%	2.42%

Institutional and Insider Ownership

69.5% of Graham shares are held by institutional investors. 5.4% of Graham shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Palladyne AI and Graham, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palladyne AI	0	0	0	0	N/A
Graham	0	0	1	0	3.00

Graham has a consensus price target of $35.00, indicating a potential upside of 9.92%. Given Graham’s higher probable upside, analysts plainly believe Graham is more favorable than Palladyne AI.

Valuation and Earnings

This table compares Palladyne AI and Graham’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palladyne AI	N/A	N/A	N/A	N/A	N/A
Graham	$185.53 million	1.87	$4.56 million	$0.43	74.05

Graham has higher revenue and earnings than Palladyne AI.

Summary

Graham beats Palladyne AI on 8 of the 8 factors compared between the two stocks.

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.