Colfax Corporation (NYSE: CFX) and Franklin Electric Co. (NASDAQ:FELE) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
77.4% of Colfax Corporation shares are owned by institutional investors. Comparatively, 77.7% of Franklin Electric Co. shares are owned by institutional investors. 10.6% of Colfax Corporation shares are owned by insiders. Comparatively, 2.5% of Franklin Electric Co. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Colfax Corporation has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Franklin Electric Co. has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Valuation and Earnings
This table compares Colfax Corporation and Franklin Electric Co.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Colfax Corporation||$3.62 billion||1.29||$446.48 million||$1.28||29.55|
|Franklin Electric Co.||$1.00 billion||1.79||$146.27 million||$1.84||20.95|
Colfax Corporation has higher revenue and earnings than Franklin Electric Co.. Franklin Electric Co. is trading at a lower price-to-earnings ratio than Colfax Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Colfax Corporation and Franklin Electric Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Franklin Electric Co.||8.62%||13.10%||7.72%|
This is a summary of recent ratings and recommmendations for Colfax Corporation and Franklin Electric Co., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Franklin Electric Co.||0||0||1||0||3.00|
Colfax Corporation currently has a consensus price target of $46.00, indicating a potential upside of 21.63%. Franklin Electric Co. has a consensus price target of $52.00, indicating a potential upside of 34.89%. Given Franklin Electric Co.’s stronger consensus rating and higher probable upside, analysts plainly believe Franklin Electric Co. is more favorable than Colfax Corporation.
Franklin Electric Co. pays an annual dividend of $0.43 per share and has a dividend yield of 1.1%. Colfax Corporation does not pay a dividend. Franklin Electric Co. pays out 23.4% of its earnings in the form of a dividend. Colfax Corporation has increased its dividend for 7 consecutive years.
Franklin Electric Co. beats Colfax Corporation on 10 of the 17 factors compared between the two stocks.
About Colfax Corporation
Colfax Corporation is an industrial manufacturing and engineering company. The Company provides gas and fluid handling and fabrication technology products and services to customers around the world. The Company’s segments include Gas and Fluid Handling, and Fabrication Technology. The Gas and Fluid Handling segment supplies a range of gas and fluid handling products, including heavy-duty centrifugal and axial fans, rotary heat exchangers, gas compressors, pumps and certain related products, as well as aftermarket and lubrication-related services, which serves customers in the power generation, oil, gas and petrochemical, mining, marine (including defense) and general industrial and other end markets. The Fabrication Technology segment supplies welding equipment and consumables, cutting equipment and consumables, and automated welding and cutting systems. It formulates, develops, manufactures and supplies consumable products and equipment.
About Franklin Electric Co.
Franklin Electric Co., Inc. designs, manufactures and distributes water and fuel pumping systems, consisting of submersible motors, pumps, electronic controls and related parts and equipment. Its segments include Water Systems segment, the Fueling Systems segment and Other. Its Water Systems segment is engaged in the production and marketing of water pumping systems and offers motors, pumps, drives, electronic controls and monitoring devices. It also designs, manufactures and sells motors, pumps, electronic controls and related parts and equipment for use in groundwater, wastewater and fuel transfer applications. Its Fueling Systems is engaged in the production and marketing of fuel pumping systems, fuel containment systems, and monitoring and control systems. It also designs, manufactures and sells pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices and related parts and equipment for use in submersible fueling system applications.
What are top analysts saying about Colfax Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Colfax Corporation and related companies.