Mueller Water Products (NYSE: MWA) and Rexnord (NYSE:RXN) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares Mueller Water Products and Rexnord’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mueller Water Products||$826.00 million||2.11||$123.30 million||$0.38||28.95|
|Rexnord||$1.92 billion||1.57||$74.10 million||$0.83||34.92|
This table compares Mueller Water Products and Rexnord’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mueller Water Products||20.51%||15.25%||5.99%|
Insider & Institutional Ownership
83.2% of Mueller Water Products shares are held by institutional investors. Comparatively, 99.7% of Rexnord shares are held by institutional investors. 3.0% of Mueller Water Products shares are held by insiders. Comparatively, 3.5% of Rexnord shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Mueller Water Products has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Rexnord has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.
Mueller Water Products pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Rexnord does not pay a dividend. Mueller Water Products pays out 52.6% of its earnings in the form of a dividend. Mueller Water Products has increased its dividend for 3 consecutive years.
This is a summary of current recommendations and price targets for Mueller Water Products and Rexnord, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mueller Water Products||1||2||5||0||2.50|
Mueller Water Products presently has a consensus price target of $13.88, suggesting a potential upside of 26.14%. Rexnord has a consensus price target of $30.50, suggesting a potential upside of 5.24%. Given Mueller Water Products’ higher possible upside, research analysts plainly believe Mueller Water Products is more favorable than Rexnord.
Rexnord beats Mueller Water Products on 9 of the 17 factors compared between the two stocks.
About Mueller Water Products
Mueller Water Products, Inc. is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. The Company operates through three segments: Mueller Co., Anvil and Mueller Technologies. The Mueller Co. segment manufactures valves for water and gas systems, and dry-barrel and wet-barrel fire hydrants. The Anvil segment manufactures and sources a range of products, including a range of fittings, couplings, hangers and related products. The Mueller Technologies segment offers metering systems, leak detection, pipe condition assessment and other products and services for the water infrastructure industry. The Mueller Technologies segment includes Mueller Systems and Echologics businesses. The Company offers a range of water infrastructure, flow control and piping component system products and services in the United States and Canada.
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
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