Ingersoll Rand Inc. (IR) and Nordson Corporation (NDSN) are two prominent players in the industrial machinery sector, each with a strong foothold in precision technologies and innovative manufacturing solutions. Both companies serve diverse industries, from medical to manufacturing, leveraging advanced engineering to maintain competitive edges. This article will analyze their strategies, market positions, and growth prospects to help you decide which company could be the smarter addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Ingersoll Rand Inc. and Nordson Corporation by providing an overview of these two companies and their main differences.
Ingersoll Rand Inc. Overview
Ingersoll Rand Inc. focuses on mission-critical air, fluid, energy, specialty vehicle, and medical technologies across multiple global regions, including the US, Europe, and Asia Pacific. It operates through Industrial Technologies and Precision and Science Technologies segments, offering products like air compressors, fluid transfer equipment, and specialized pumps. Founded in 1859 and headquartered in Davidson, NC, the company serves diverse industries such as medical, manufacturing, energy, and agriculture.
Nordson Corporation Overview
Nordson Corporation engineers and markets dispensing, coating, and fluid control products worldwide, operating through Industrial Precision Solutions and Advanced Technology Solutions segments. Its offerings include adhesive dispensing systems, coating and curing technologies, and precision automated systems for semiconductors and medical devices. Founded in 1935 and based in Westlake, OH, Nordson serves industries ranging from packaged goods to electronics and healthcare.
Key similarities and differences
Both companies operate in the industrial machinery sector with a focus on specialized equipment for fluid and material handling. Ingersoll Rand emphasizes air and fluid compression technologies, serving broader industrial and energy markets, while Nordson specializes in precision dispensing and coating systems with a strong presence in adhesives and medical device applications. Ingersoll Rand is larger by market cap and employee count, reflecting a broader product portfolio and geographic reach.
Income Statement Comparison
Below is a side-by-side comparison of the most recent fiscal year income statement metrics for Ingersoll Rand Inc. and Nordson Corporation, highlighting key financial performance indicators.
| Metric | Ingersoll Rand Inc. (IR) | Nordson Corporation (NDSN) |
|---|---|---|
| Market Cap | 33.8B | 14.6B |
| Revenue | 7.24B | 2.79B |
| EBITDA | 1.83B | 712M |
| EBIT | 1.35B | 561M |
| Net Income | 839M | 484M |
| EPS | 2.08 | 8.56 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Ingersoll Rand Inc.
Ingersoll Rand exhibited steady revenue growth from 2020 to 2024, increasing from $3.97B to $7.24B. Net income surged impressively over the same period, reaching $839M in 2024, with net margin improving significantly. The 2024 year showed a moderate 5.2% revenue rise, 13.3% EBIT growth, and favorable margin expansion, reflecting solid operational leverage despite slightly increased operating expenses.
Nordson Corporation
Nordson’s revenue rose moderately from $2.36B in 2021 to $2.79B in 2025. Net income grew modestly to $484M in 2025, but margins showed mixed trends. The latest year saw a 3.8% revenue increase but a 16.8% EBIT decline and a slight net margin contraction, indicating margin pressure despite efficient expense management. EPS growth remained positive, supporting earnings quality.
Which one has the stronger fundamentals?
Ingersoll Rand demonstrates stronger fundamentals with higher total revenue and net income growth, along with significant margin improvements, particularly in EBIT and net margin. Nordson maintains favorable margins but faces recent EBIT and net margin declines. Overall, Ingersoll Rand’s robust growth and margin expansion provide a more favorable income statement profile compared to Nordson’s moderate revenue gains and margin challenges.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Ingersoll Rand Inc. (IR) and Nordson Corporation (NDSN) based on their most recent fiscal year data.
| Ratios | Ingersoll Rand Inc. (2024) | Nordson Corporation (2025) |
|---|---|---|
| ROE | 8.2% | 15.9% |
| ROIC | 6.1% | 10.5% |
| P/E | 43.5 | 27.1 |
| P/B | 3.58 | 4.31 |
| Current Ratio | 2.29 | 1.64 |
| Quick Ratio | 1.71 | 1.05 |
| D/E (Debt-to-Equity) | 0.49 | 0.69 |
| Debt-to-Assets | 27.7% | 35.4% |
| Interest Coverage | 6.10 | 7.04 |
| Asset Turnover | 0.40 | 0.47 |
| Fixed Asset Turnover | 8.59 | 4.70 |
| Payout Ratio | 3.9% | 37.0% |
| Dividend Yield | 0.09% | 1.36% |
Interpretation of the Ratios
Ingersoll Rand Inc.
Ingersoll Rand presents a mixed ratio profile with favorable liquidity and leverage metrics, including a current ratio of 2.29 and debt-to-equity of 0.49, signaling solid short-term financial health and moderate leverage. However, its return on equity at 8.24% and price multiples are less favorable, and asset turnover is weak, indicating potential operational inefficiencies. The company pays a modest dividend with a low yield of 0.09%, suggesting cautious shareholder returns.
Nordson Corporation
Nordson shows generally stronger profitability ratios, including a 15.92% return on equity and a 17.35% net margin, supported by effective asset utilization despite a slightly higher leverage ratio (debt-to-equity 0.69). Its liquidity ratios remain reasonable but lower than Ingersoll Rand’s. The dividend yield stands at 1.36%, reflecting a moderate shareholder return approach balanced with neutral risk indicators in leverage and valuation multiples.
Which one has the best ratios?
Both companies have a slightly favorable overall ratio assessment with half of their ratios rated favorable. Nordson excels in profitability and return metrics, while Ingersoll Rand leads in liquidity and leverage strength. Nordson’s higher dividend yield contrasts with Ingersoll Rand’s conservative payout. The choice depends on the investor’s priority between profitability and financial stability metrics.
Strategic Positioning
This section compares the strategic positioning of Ingersoll Rand Inc. and Nordson Corporation, including Market position, Key segments, and Exposure to technological disruption:
Ingersoll Rand Inc. (IR)
- Large market cap of 33.8B, operating globally with broad industrial machinery offerings under multiple well-known brands.
- Two main segments: Industrial Technologies and Services (5.8B revenue) and Precision and Science Technologies (1.4B).
- Positioned in traditional industrial machinery with exposure to air, fluid, energy, and specialty vehicle technologies.
Nordson Corporation (NDSN)
- Smaller market cap of 14.6B, focused on industrial machinery with specialized dispensing and coating technology.
- Three segments: Industrial Precision Solutions (1.5B), Advanced Technology Systems (510M), Medical and Fluid Solutions (695M).
- Focused on precision fluid dispensing, coatings, and curing systems with advanced automation and medical device exposure.
IR vs NDSN Positioning
IR presents a diversified industrial technology portfolio with extensive aftermarket services and global reach, while NDSN concentrates on precision dispensing and coating technologies with medical applications. IR’s broad product range contrasts with NDSN’s specialized, technology-driven focus.
Which has the best competitive advantage?
NDSN is creating value with ROIC above WACC despite declining profitability, showing a slightly favorable moat. IR is shedding value but improving profitability, resulting in a slightly unfavorable moat. Based on MOAT, NDSN holds a better competitive advantage.
Stock Comparison
The stock price movements of Ingersoll Rand Inc. and Nordson Corporation over the past year reveal distinct trading dynamics, with both showing recent upward momentum after broader bearish trends.
Trend Analysis
Ingersoll Rand Inc. experienced a -4.43% price decline over the past year, indicating a bearish trend with acceleration. The stock showed a high volatility of 8.07 std deviation and reached a peak of 104.17 before bottoming at 69.7.
Nordson Corporation’s price fell by -1.08% over the same period, representing a bearish trend but closer to neutral. It showed higher volatility with a 23.45 std deviation and traded between 176.73 and 278.89.
Comparing recent performance, Nordson’s 10.73% price gain surpasses Ingersoll Rand’s 7.18% rise, marking Nordson as the stronger performer in the latest period analyzed.
Target Prices
Analysts present a positive consensus on target prices for Ingersoll Rand Inc. and Nordson Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Ingersoll Rand Inc. | 100 | 81 | 91.5 |
| Nordson Corporation | 295 | 240 | 274.17 |
The consensus targets for both stocks exceed their current prices—Ingersoll Rand trades at 85.51 USD and Nordson at 261.22 USD—indicating moderate upside potential according to analyst expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial grades for Ingersoll Rand Inc. and Nordson Corporation:
Rating Comparison
IR Rating
- Rating: C+ with a very favorable status
- Discounted Cash Flow Score: 3, moderate
- Return on Equity Score: 2, moderate
- Return on Assets Score: 3, moderate
- Debt To Equity Score: 2, moderate
- Overall Score: 2, moderate
NDSN Rating
- Rating: B with a very favorable status
- Discounted Cash Flow Score: 3, moderate
- Return on Equity Score: 4, favorable
- Return on Assets Score: 4, favorable
- Debt To Equity Score: 2, moderate
- Overall Score: 3, moderate
Which one is the best rated?
Based strictly on the provided data, Nordson (NDSN) holds higher ratings and stronger return metrics than Ingersoll Rand (IR), resulting in a better overall score and more favorable analyst evaluations.
Scores Comparison
The scores comparison for Ingersoll Rand Inc. and Nordson Corporation is as follows:
IR Scores
- Altman Z-Score: 3.27, indicating safe zone.
- Piotroski Score: 5, categorized as average.
NDSN Scores
- Altman Z-Score: 4.90, indicating safe zone.
- Piotroski Score: 7, categorized as strong.
Which company has the best scores?
Nordson Corporation has higher Altman Z-Score and Piotroski Score values than Ingersoll Rand Inc., reflecting stronger financial stability and strength based on the provided data.
Grades Comparison
The following presents a comparison of recent analyst grades for Ingersoll Rand Inc. and Nordson Corporation:
Ingersoll Rand Inc. Grades
This table lists the latest grades and actions from recognized grading companies for Ingersoll Rand Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2026-01-07 |
| Stifel | Maintain | Hold | 2025-12-16 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| Citigroup | Maintain | Buy | 2025-11-03 |
| Baird | Maintain | Outperform | 2025-11-03 |
| Stifel | Maintain | Hold | 2025-10-20 |
| Wells Fargo | Maintain | Overweight | 2025-10-06 |
| Morgan Stanley | Maintain | Equal Weight | 2025-08-13 |
| Barclays | Maintain | Overweight | 2025-08-04 |
| Stifel | Maintain | Hold | 2025-08-04 |
Ingersoll Rand’s grades show a balanced trend with multiple Buy and Overweight ratings, alongside several Hold opinions, reflecting moderate confidence among analysts.
Nordson Corporation Grades
The table below shows the recent grades and recommendations from major grading firms for Nordson Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Buy | 2025-12-12 |
| Baird | Maintain | Neutral | 2025-12-12 |
| DA Davidson | Maintain | Buy | 2025-12-11 |
| Keybanc | Maintain | Overweight | 2025-12-11 |
| Oppenheimer | Maintain | Outperform | 2025-08-25 |
| Baird | Maintain | Neutral | 2025-08-22 |
| Keybanc | Maintain | Overweight | 2025-07-15 |
| Baird | Maintain | Neutral | 2025-05-30 |
| Oppenheimer | Upgrade | Outperform | 2025-05-30 |
| Keybanc | Maintain | Overweight | 2025-04-08 |
Nordson Corporation’s grades mostly range from Buy and Overweight to Outperform, with some Neutral ratings, indicating a generally positive analyst stance.
Which company has the best grades?
Both companies have a consensus rating of Buy, but Nordson Corporation exhibits a stronger pattern of positive ratings such as multiple Buy, Overweight, and Outperform grades compared to Ingersoll Rand’s more mixed Hold and Equal Weight opinions. This difference may influence investors seeking stronger analyst conviction.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Ingersoll Rand Inc. (IR) and Nordson Corporation (NDSN) based on the most recent data.
| Criterion | Ingersoll Rand Inc. (IR) | Nordson Corporation (NDSN) |
|---|---|---|
| Diversification | Strong with Industrial Technologies & Precision segments generating $7.99B in 2024 | Diversified across Advanced Tech, Industrial Precision, and Medical segments totaling $2.7B in 2024 |
| Profitability | Moderate net margin (11.6%), but ROIC (6.11%) below WACC (9.22%), shedding value | Higher net margin (17.4%) and ROIC (10.5%) above WACC (8%), creating value |
| Innovation | Growing ROIC trend suggests improving operational efficiency despite value loss | Declining ROIC trend indicates innovation challenges impacting profitability |
| Global presence | Established global footprint in industrial markets | Global reach with specialized precision and medical technology markets |
| Market Share | Large industrial market share, boosted by aftermarket and original equipment sales | Strong niche market share in precision dispensing and medical fluid solutions |
Key takeaways: Ingersoll Rand shows improving profitability trends but currently destroys value as ROIC remains below cost of capital. Nordson creates value with strong margins and ROIC but faces declining profitability trends. Both offer diversification and global presence, but investors should weigh IR’s turnaround potential against NDSN’s slowing growth.
Risk Analysis
Below is a comparative table summarizing key risk factors for Ingersoll Rand Inc. (IR) and Nordson Corporation (NDSN) based on the most recent data available:
| Metric | Ingersoll Rand Inc. (IR) | Nordson Corporation (NDSN) |
|---|---|---|
| Market Risk | Beta 1.33, higher volatility exposure | Beta 1.03, moderate volatility |
| Debt Level | Debt/Equity 0.49 (favorable), Debt to Assets 27.65% (favorable) | Debt/Equity 0.69 (neutral), Debt to Assets 35.36% (neutral) |
| Regulatory Risk | Moderate, industrial sector exposure to evolving regulations | Moderate, precision machinery with some regulatory oversight |
| Operational Risk | Diverse segments; complexity may increase operational risk | Specialized dispensing systems; operational risks from tech innovation |
| Environmental Risk | Industrial machinery with moderate environmental impact | Manufacturing processes with controlled environmental footprint |
| Geopolitical Risk | Global operations, exposed to US, Europe, Asia markets | Global sales, moderate geopolitical exposure |
Ingersoll Rand’s higher beta and moderate debt levels indicate a somewhat elevated market and financial risk but balanced by favorable liquidity and interest coverage. Nordson shows moderate market risk with slightly higher leverage and a strong operational focus on precision technologies. The most impactful risks for both include market volatility and debt management, with Ingersoll Rand facing somewhat higher market sensitivity. Investors should monitor sector regulatory changes and geopolitical tensions given their global operations.
Which Stock to Choose?
Ingersoll Rand Inc. (IR) shows a favorable income evolution with strong growth in revenue and net income over 2020-2024. Its financial ratios are slightly favorable, highlighting good liquidity and debt metrics, though profitability ratios like ROE remain moderate. The company carries manageable debt and holds a very favorable rating of C+ with moderate overall scores.
Nordson Corporation (NDSN) presents favorable income metrics, with solid gross and net margins, though recent EBIT and net margin growth have weakened. Its financial ratios are slightly favorable, emphasizing strong profitability and decent liquidity, despite higher leverage. Debt levels are moderate, and it has a very favorable B rating with strong Altman and Piotroski scores.
For investors prioritizing stable profitability and value creation, Nordson may appear more favorable due to its higher returns and stronger ratings, despite a declining ROIC trend. Conversely, Ingersoll Rand’s improving profitability and lower leverage might appeal to those focused on growth and financial resilience. Ultimately, the choice could depend on the investor’s risk tolerance and investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Ingersoll Rand Inc. and Nordson Corporation to enhance your investment decisions:
