Analyzing nVent Electric (NYSE:NVT) and Sensata Technologies (NYSE:ST)

nVent Electric (NYSE:NVT) and Sensata Technologies (NYSE:ST) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

nVent Electric has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Sensata Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for nVent Electric and Sensata Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nVent Electric	0	2	15	2	3.00
Sensata Technologies	1	5	4	0	2.30

nVent Electric presently has a consensus target price of $199.50, suggesting a potential upside of 21.43%. Sensata Technologies has a consensus target price of $48.80, suggesting a potential upside of 15.71%. Given nVent Electric’s stronger consensus rating and higher possible upside, research analysts plainly believe nVent Electric is more favorable than Sensata Technologies.

Earnings and Valuation

This table compares nVent Electric and Sensata Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nVent Electric	$3.89 billion	6.83	$710.20 million	$3.66	44.89
Sensata Technologies	$3.70 billion	1.66	$31.30 million	$0.60	70.29

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

Profitability

This table compares nVent Electric and Sensata Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nVent Electric	12.38%	18.85%	10.30%
Sensata Technologies	2.37%	18.68%	7.77%

Dividends

nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Sensata Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. nVent Electric pays out 23.0% of its earnings in the form of a dividend. Sensata Technologies pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. nVent Electric has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

90.0% of nVent Electric shares are held by institutional investors. Comparatively, 99.4% of Sensata Technologies shares are held by institutional investors. 1.7% of nVent Electric shares are held by company insiders. Comparatively, 0.7% of Sensata Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

nVent Electric beats Sensata Technologies on 15 of the 18 factors compared between the two stocks.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.