Rexnord (NYSE: RXN) and Welbilt (NYSE:WBT) are both mid-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.
Risk and Volatility
Rexnord has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Welbilt has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Rexnord and Welbilt, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rexnord presently has a consensus target price of $30.50, suggesting a potential upside of 1.33%. Welbilt has a consensus target price of $23.40, suggesting a potential upside of 14.82%. Given Welbilt’s higher possible upside, analysts clearly believe Welbilt is more favorable than Rexnord.
Valuation & Earnings
This table compares Rexnord and Welbilt’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rexnord||$1.92 billion||1.63||$74.10 million||$1.31||22.98|
|Welbilt||$1.45 billion||1.97||$134.00 million||$0.96||21.23|
Welbilt has lower revenue, but higher earnings than Rexnord. Welbilt is trading at a lower price-to-earnings ratio than Rexnord, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
99.8% of Rexnord shares are owned by institutional investors. Comparatively, 89.9% of Welbilt shares are owned by institutional investors. 3.5% of Rexnord shares are owned by insiders. Comparatively, 0.7% of Welbilt shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Rexnord and Welbilt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Rexnord beats Welbilt on 8 of the 14 factors compared between the two stocks.
Rexnord Company Profile
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
Welbilt Company Profile
Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.
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