Dover (NYSE: DOV) and Welbilt (NYSE:WBT) are both mid-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Insider & Institutional Ownership
84.5% of Dover shares are owned by institutional investors. Comparatively, 91.1% of Welbilt shares are owned by institutional investors. 2.5% of Dover shares are owned by insiders. Comparatively, 0.7% of Welbilt shares are owned by 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.
This table compares Dover and Welbilt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dover pays an annual dividend of $1.88 per share and has a dividend yield of 1.8%. Welbilt 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 62 consecutive years.
Earnings and Valuation
This table compares Dover and Welbilt’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dover||$6.79 billion||2.39||$508.89 million||$4.30||24.22|
|Welbilt||$1.46 billion||2.21||$79.50 million||$0.64||36.14|
Dover has higher revenue and earnings than Welbilt. Dover is trading at a lower price-to-earnings ratio than Welbilt, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Dover and Welbilt, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dover currently has a consensus target price of $96.73, indicating a potential downside of 7.12%. Welbilt has a consensus target price of $23.40, indicating a potential upside of 1.17%. Given Welbilt’s stronger consensus rating and higher probable upside, analysts clearly believe Welbilt is more favorable than Dover.
Risk and Volatility
Dover has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Welbilt has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.
Dover beats Welbilt on 11 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.
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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