Analyzing SPX Technologies (NYSE:SPXC) and Sandvik (OTCMKTS:SDVKY)

SPX Technologies (NYSE:SPXC) and Sandvik (OTCMKTS:SDVKY) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Insider and Institutional Ownership

92.8% of SPX Technologies shares are owned by institutional investors. Comparatively, 0.7% of Sandvik shares are owned by institutional investors. 2.9% of SPX Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for SPX Technologies and Sandvik, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPX Technologies	0	1	9	1	3.00
Sandvik	1	8	3	1	2.31

SPX Technologies presently has a consensus target price of $264.89, suggesting a potential upside of 53.96%. Given SPX Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe SPX Technologies is more favorable than Sandvik.

Risk & Volatility

SPX Technologies has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Sandvik has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares SPX Technologies and Sandvik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPX Technologies	11.27%	16.53%	10.03%
Sandvik	13.05%	18.45%	9.99%

Valuation and Earnings

This table compares SPX Technologies and Sandvik”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPX Technologies	$2.48 billion	3.48	$244.00 million	$5.56	30.95
Sandvik	$12.34 billion	3.84	$1.50 billion	$1.45	26.08

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

Summary

SPX Technologies beats Sandvik on 8 of the 14 factors compared between the two stocks.

About SPX Technologies

SPX Technologies, Inc. supplies infrastructure equipment serving the heating, ventilation, and cooling (HVAC); and detection and measurement markets worldwide. The company operates in two segments, HVAC and Detection and Measurement. The HVAC segment engineers, designs, manufactures, installs, and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as boilers, heating, and ventilation products for the residential and commercial markets. It offers its products under the Marley, Recold, SGS, Cincinnati Fan, TAMCO, Ingénia, Berko, Qmark, Fahrenheat, Leading Edge, Patterson-Kelley, Weil-McLain, Williamson-Thermoflo, INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, and Solar Products brands. The Detection and Measurement segment offers underground pipe and cable locators, inspection and rehabilitation equipment, and robotic systems under the Radiodetection, Pearpoint, Schonstedt, Dielectric, Riser Bond, Cues, ULC Robotics, and Sensors & Software brands; transportation systems under the Genfare brand; communication technologies products under the TCI and ECS brands; and obstruction lighting products under the Flash Technology, ITL, Sabik Marine, Sealite, and Avlite brands. The company markets its products through independent manufacturing representatives, third-party distributors, and retailers, as well as direct to customers. The company was formerly known as SPX Corporation and changed its name to SPX Technologies, Inc. in August 2022. SPX Technologies, Inc. was founded in 1912 and is headquartered in Charlotte, North Carolina.

About Sandvik

Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It also provides metal-cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and components made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. The company serves aerospace, automotive, energy, general engineering, infrastructure, and mining industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.