Dover (NYSE: DOV) and SPX FLOW (NYSE:FLOW) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Dividends

Dover pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. SPX FLOW does not pay a dividend. Dover pays out 43.7% of its earnings in the form of a dividend. Dover has increased its dividend for 61 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dover and SPX FLOW, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover 0 10 6 0 2.38
SPX FLOW 2 1 3 0 2.17

Dover presently has a consensus target price of $94.82, suggesting a potential downside of 4.74%. SPX FLOW has a consensus target price of $38.00, suggesting a potential downside of 18.75%. Given Dover’s stronger consensus rating and higher probable upside, analysts clearly believe Dover is more favorable than SPX FLOW.

Insider and Institutional Ownership

84.4% of Dover shares are held by institutional investors. Comparatively, 85.8% of SPX FLOW shares are held by institutional investors. 2.5% of Dover shares are held by insiders. Comparatively, 3.0% of SPX FLOW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Dover and SPX FLOW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover 8.91% 14.10% 5.52%
SPX FLOW 1.17% 6.17% 1.90%

Valuation and Earnings

This table compares Dover and SPX FLOW’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dover $6.79 billion 2.28 $508.89 million $4.30 23.15
SPX FLOW $2.00 billion 0.99 -$381.80 million $0.53 88.25

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

Summary

Dover beats SPX FLOW on 12 of the 16 factors compared between the two stocks.

Dover Company Profile

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.

SPX FLOW Company Profile

SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.

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