Ingersoll Rand or Parker Hannifin: Which Stock Has More Upside?
Even as Parker Hannifin surged 7.5% during the past Day, its peer Ingersoll Rand may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Ingersoll Rand (IR) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Parker Hannifin (PH) stock, suggesting you may be better off investing in IR
- IR’s quarterly revenue growth was 5.1%, vs. PH’s 1.1%.
- In addition, its Last 12 Months revenue growth came in at 4.2%, ahead of PH’s -0.4%.
- IR’s 3-year average margin is stronger: 19.1% vs. PH’s 18.6%.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. That is one way to look at stocks. The Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure.
PH manufactures motion and control technologies for mobile, industrial, and aerospace markets, serving commercial and military airframe and engine programs through diversified industrial and aerospace segments. IR provides mission-critical air, fluid, energy, specialty vehicle, and medical technologies for industrial, medical, laboratory, water, and chemical processing applications.
Valuation & Performance Overview
| PH | IR | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 26.1 | 20.8 | IR |
| Revenue Growth | |||
| Last Quarter | 1.1% | 5.1% | IR |
| Last 12 Months | -0.4% | 4.2% | IR |
| Last 3 Year Average | 8.1% | 9.4% | IR |
| Operating Margins | |||
| Last 12 Months | 20.5% | 19.8% | PH |
| Last 3 Year Average | 18.6% | 19.1% | IR |
| Momentum | |||
| Last 3 Year Return | 190.8% | 47.3% | PH |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: PH Revenue Comparison | IR Revenue Comparison
See more margin details: PH Operating Income Comparison | IR Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell IR Stock to see if Ingersoll Rand’s edge holds up under the hood or if Parker Hannifin still has cards to play (see Buy or Sell PH Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| PH Return | 35% | 18% | -7% | 61% | 40% | 32% | 341% | <=== | |
| IR Return | 24% | 36% | -15% | 48% | 17% | -14% | 113% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| PH Win Rate | 58% | 50% | 33% | 58% | 67% | 70% | 56% | ||
| IR Win Rate | 50% | 75% | 33% | 58% | 50% | 50% | 53% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| PH Max Drawdown | -52% | -8% | -25% | 0% | -2% | -18% | -18% | ||
| IR Max Drawdown | -48% | -10% | -36% | 0% | -3% | -26% | -21% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/6/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read IR Dip Buyer Analyses and PH Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.