Analyzing Q.E.P. (OTCMKTS:QEPC) and Carrier Global (NYSE:CARR)

Carrier Global (NYSE:CARR) and Q.E.P. (OTCMKTS:QEPC) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Risk & Volatility

Carrier Global has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Q.E.P. has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Carrier Global and Q.E.P., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carrier Global	0	9	12	1	2.64
Q.E.P.	0	0	0	0	0.00

Carrier Global presently has a consensus price target of $73.67, suggesting a potential upside of 16.20%. Given Carrier Global’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Carrier Global is more favorable than Q.E.P..

Valuation and Earnings

This table compares Carrier Global and Q.E.P.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carrier Global	$21.75 billion	2.40	$1.48 billion	$1.44	44.03
Q.E.P.	$233.71 million	0.73	$15.77 million	$3.50	15.85

Carrier Global has higher revenue and earnings than Q.E.P.. Q.E.P. is trading at a lower price-to-earnings ratio than Carrier Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Carrier Global and Q.E.P.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carrier Global	5.52%	14.68%	5.51%
Q.E.P.	6.59%	15.99%	10.47%

Dividends

Carrier Global pays an annual dividend of $0.96 per share and has a dividend yield of 1.5%. Q.E.P. pays an annual dividend of $0.88 per share and has a dividend yield of 1.6%. Carrier Global pays out 66.7% of its earnings in the form of a dividend. Q.E.P. pays out 25.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Carrier Global has increased its dividend for 4 consecutive years. Q.E.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

91.0% of Carrier Global shares are owned by institutional investors. 6.5% of Carrier Global shares are owned by company insiders. Comparatively, 51.1% of Q.E.P. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Carrier Global beats Q.E.P. on 11 of the 18 factors compared between the two stocks.

About Carrier Global

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, heat pumps, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. This segment also offers fire and security service, such as audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. It offers its products under the Autronica, Det-Tronics, Edwards, Aritech, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. Carrier Global Corporation was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.

About Q.E.P.

Q.E.P. Co., Inc. designs, manufactures, and distributes flooring installation solutions for commercial and home improvement projects worldwide. The company’s product portfolio includes tile saws, blades, and accessories; tile cutters and accessories; hand tools; tile spacers and leveling systems; suction cups; trowels and floats; mixers and paddles; drill bits, hole saws, and jigsaw blades; scarpers and blades; clean-up, repair, and maintenance products; knee pads and safety products; underlayment products; installation kits; and cement boards tools. It markets its products under the QEP, LASH, Roberts, Capitol, Homelux, Brutus, PRCI, Tomecanic, andPremix-Marbletite (PMM) brands. The company sells its products to home improvement retail centers and specialty distribution outlets. Q.E.P. Co., Inc. was founded in 1979 and is headquartered in Boca Raton, Florida.