Analyzing IDEX Corporation (IEX) & Franklin Electric Co. (NASDAQ:FELE)
Franklin Electric Co. (NASDAQ: FELE) and IDEX Corporation (NYSE:IEX) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Risk & Volatility
Franklin Electric Co. has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, IDEX Corporation has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Franklin Electric Co. pays an annual dividend of $0.43 per share and has a dividend yield of 1.0%. IDEX Corporation pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Franklin Electric Co. pays out 25.3% of its earnings in the form of a dividend. IDEX Corporation pays out 40.7% 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. Franklin Electric Co. has raised its dividend for 7 consecutive years and IDEX Corporation has raised its dividend for 7 consecutive years.
This is a summary of current ratings and price targets for Franklin Electric Co. and IDEX Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Franklin Electric Co.||0||0||0||0||N/A|
IDEX Corporation has a consensus price target of $97.14, indicating a potential downside of 14.31%. Given IDEX Corporation’s higher possible upside, analysts clearly believe IDEX Corporation is more favorable than Franklin Electric Co..
This table compares Franklin Electric Co. and IDEX Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Franklin Electric Co.||8.48%||13.04%||7.72%|
Insider & Institutional Ownership
78.4% of Franklin Electric Co. shares are held by institutional investors. Comparatively, 98.7% of IDEX Corporation shares are held by institutional investors. 2.5% of Franklin Electric Co. shares are held by insiders. Comparatively, 1.0% of IDEX Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Franklin Electric Co. and IDEX Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Franklin Electric Co.||$951.68 million||2.06||$143.74 million||$1.70||24.85|
|IDEX Corporation||$2.16 billion||4.01||$548.12 million||$3.64||31.15|
IDEX Corporation has higher revenue and earnings than Franklin Electric Co.. Franklin Electric Co. is trading at a lower price-to-earnings ratio than IDEX Corporation, indicating that it is currently the more affordable of the two stocks.
IDEX Corporation beats Franklin Electric Co. on 12 of the 15 factors compared between the two stocks.
Franklin Electric Co. Company Profile
Franklin Electric Co., Inc. designs, manufactures and distributes water and fuel pumping systems, consisting of submersible motors, pumps, electronic controls and related parts and equipment. Its segments include Water Systems segment, the Fueling Systems segment and Other. Its Water Systems segment is engaged in the production and marketing of water pumping systems and offers motors, pumps, drives, electronic controls and monitoring devices. It also designs, manufactures and sells motors, pumps, electronic controls and related parts and equipment for use in groundwater, wastewater and fuel transfer applications. Its Fueling Systems is engaged in the production and marketing of fuel pumping systems, fuel containment systems, and monitoring and control systems. It also designs, manufactures and sells pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices and related parts and equipment for use in submersible fueling system applications.
IDEX Corporation Company Profile
IDEX Corporation (IDEX) operates an applied solutions business that sells pumps, flow meters and other fluidics systems, and components and engineered products. The Company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST) and Fire & Safety/Diversified Products (FSDP). With its segments, as of December 31, 2016, the Company maintained 13 platforms, where it focused on growth and acquisitions. The Company’s FMT segment provides flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural and energy industries. The HST segment designs, produces and distributes precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction and drying systems. Its FSDP segment produces firefighting pumps and controls, rescue tools, lifting bags and other components and systems; engineered stainless steel banding and clamping devices, and precision equipment.
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