Critical Analysis: Energie (OTCMKTS:ELED) and A. O. Smith (NYSE:AOS)

Energie (OTCMKTS:ELED) and A. O. Smith (NYSE:AOS) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Valuation and Earnings

This table compares Energie and A. O. Smith”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energie	N/A	N/A	N/A	N/A	N/A
A. O. Smith	$3.83 billion	2.39	$533.60 million	$3.71	17.60

A. O. Smith has higher revenue and earnings than Energie.

Analyst Recommendations

This is a breakdown of recent ratings for Energie and A. O. Smith, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energie	0	0	0	0	0.00
A. O. Smith	0	5	2	0	2.29

A. O. Smith has a consensus price target of $77.00, indicating a potential upside of 17.92%. Given A. O. Smith’s stronger consensus rating and higher possible upside, analysts clearly believe A. O. Smith is more favorable than Energie.

Profitability

This table compares Energie and A. O. Smith’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energie	N/A	N/A	N/A
A. O. Smith	13.85%	29.34%	16.86%

Insider & Institutional Ownership

76.1% of A. O. Smith shares are owned by institutional investors. 52.1% of Energie shares are owned by company insiders. Comparatively, 0.8% of A. O. Smith shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

A. O. Smith beats Energie on 8 of the 9 factors compared between the two stocks.

About Energie

ExeLED Holdings Inc. designs, develops, enhances, and markets commercial grade illumination products that use LED's as their light source in the continental United States, Canada, and Puerto Rico. The company offers LED hanging and recessed ceiling fixtures, recessed wall fixtures, and wall sconces. Its products are installed in various settings, including commercial office space, financial trading floors, health care facilities, museums, schools, restaurants, retail stores, and other public locations. ExeLED Holdings Inc. sells its products through third-party sales agencies. The company was formerly known as Energie Holdings, Inc. and changed its name to ExeLED Holdings Inc. in November 2015. ExeLED Holdings Inc. was founded in 2001 and is headquartered in Arvada, Colorado.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.