Comparing General Electric (NYSE:GE) and Legrand (OTCMKTS:LGRDY)

General Electric (NYSE:GE) and Legrand (OTCMKTS:LGRDY) are both large-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

74.8% of General Electric shares are owned by institutional investors. 0.7% of General Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares General Electric and Legrand”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Electric	$38.70 billion	5.50	$9.48 billion	$5.99	32.86
Legrand	$9.11 billion	3.12	$1.24 billion	$0.86	25.05

General Electric has higher revenue and earnings than Legrand. Legrand is trading at a lower price-to-earnings ratio than General Electric, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

General Electric has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Legrand has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for General Electric and Legrand, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Electric	0	2	14	0	2.88
Legrand	0	0	1	0	3.00

General Electric presently has a consensus target price of $205.80, suggesting a potential upside of 4.57%. Given General Electric’s higher possible upside, research analysts clearly believe General Electric is more favorable than Legrand.

Profitability

This table compares General Electric and Legrand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Electric	11.48%	18.93%	3.20%
Legrand	12.53%	15.15%	6.88%

Summary

General Electric beats Legrand on 11 of the 14 factors compared between the two stocks.

About General Electric

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.

About Legrand

Legrand SA, together with its subsidiaries, manufactures, distributes, and sells electrical and digital building infrastructures in Europe, North and Central America, and internationally. The company offers energy distribution, protection, and management solutions, such as electric vehicle charging, residential and small commercial panels, switchboards and power cabinets, and UPS devices; and wiring devices, connected home and building control solutions, and guestroom solutions, as well as back, junction, DCL, and floor boxes. It also provides security, communication, and network solutions, including access security, digital home networks, emergency lighting, fire alarms, IT networks, intercom and door entry, and nurse call systems; conduits and cable management solutions comprising trunking, ducts, tubes, floor boxes, columns and feeders, and workstation solutions; industrial products, such as enclosures, connections, transformers and power supply, marking accessories and cable ties, motor control and protection, fuse protection, and industrial plugs and sockets, as well as control, button, and signaling products; installation accessories, including wiring accessories, extension cords, multi-outlet units, cable ties and fasteners, and connection boxes and terminals; and lighting products and accessories. The company's products are used in hotels, offices, data centers, shopping centers, health care, industrial, and residential buildings. It also exports its products to approximately 170 countries. Legrand SA was founded in 1865 and is headquartered in Limoges, France.