Mueller Water Products (NYSE: MWA) and Snap-On (NYSE:SNA) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation & Earnings

This table compares Mueller Water Products and Snap-On’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Mueller Water Products $826.00 million 2.35 $123.30 million $0.76 16.16
Snap-On $3.43 billion 2.65 $546.40 million $9.75 16.38

Snap-On has higher revenue and earnings than Mueller Water Products. Mueller Water Products is trading at a lower price-to-earnings ratio than Snap-On, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Mueller Water Products has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Snap-On has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Mueller Water Products and Snap-On’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mueller Water Products 14.93% 15.43% 5.70%
Snap-On 15.95% 20.82% 11.72%

Analyst Ratings

This is a breakdown of recent ratings for Mueller Water Products and Snap-On, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mueller Water Products 0 2 6 0 2.75
Snap-On 0 2 7 0 2.78

Mueller Water Products presently has a consensus target price of $13.75, indicating a potential upside of 11.97%. Snap-On has a consensus target price of $192.00, indicating a potential upside of 20.23%. Given Snap-On’s stronger consensus rating and higher probable upside, analysts clearly believe Snap-On is more favorable than Mueller Water Products.

Dividends

Mueller Water Products pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. Snap-On pays an annual dividend of $3.28 per share and has a dividend yield of 2.1%. Mueller Water Products pays out 21.1% of its earnings in the form of a dividend. Snap-On pays out 33.6% 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. Mueller Water Products has increased its dividend for 2 consecutive years and Snap-On has increased its dividend for 7 consecutive years. Snap-On is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

84.0% of Mueller Water Products shares are owned by institutional investors. Comparatively, 98.8% of Snap-On shares are owned by institutional investors. 4.3% of Mueller Water Products shares are owned by company insiders. Comparatively, 3.7% of Snap-On shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Snap-On beats Mueller Water Products on 13 of the 17 factors compared between the two stocks.

Mueller Water Products Company Profile

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.

Snap-On Company Profile

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.

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