Dover (NYSE: DOV) and SPX Flow (NYSE:FLOW) are both mid-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Institutional & Insider Ownership
84.4% of Dover shares are owned by institutional investors. Comparatively, 85.8% of SPX Flow shares are owned by institutional investors. 2.5% of Dover shares are owned by insiders. Comparatively, 3.0% of SPX Flow shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dover pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. SPX Flow does not pay a dividend. Dover pays out 43.7% of its earnings in the form of a dividend. Dover has raised its dividend for 61 consecutive years.
This is a breakdown of recent ratings for Dover and SPX Flow, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dover presently has a consensus target price of $94.82, indicating a potential downside of 5.62%. SPX Flow has a consensus target price of $38.00, indicating a potential downside of 19.32%. Given Dover’s stronger consensus rating and higher possible upside, research analysts clearly believe Dover is more favorable than SPX Flow.
Earnings & Valuation
This table compares Dover and SPX Flow’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dover||$6.79 billion||2.30||$508.89 million||$4.30||23.36|
|SPX Flow||$2.00 billion||1.00||-$381.80 million||$0.52||90.58|
Dover has higher revenue and earnings than SPX Flow. Dover is trading at a lower price-to-earnings ratio than SPX Flow, indicating that it is currently the more affordable of the two stocks.
This table compares Dover and SPX Flow’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Dover has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, SPX Flow has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.
Dover beats SPX Flow on 12 of the 17 factors compared between the two stocks.
Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.
About SPX Flow
SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.
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