WSI Industries (NASDAQ:WSCI) and SPX (NYSE:SPXC) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Volatility & Risk

WSI Industries has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, SPX has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Dividends

WSI Industries pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. SPX does not pay a dividend.

Analyst Ratings

This is a summary of recent recommendations for WSI Industries and SPX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WSI Industries 0 0 0 0 N/A
SPX 0 1 2 0 2.67

SPX has a consensus target price of $36.67, suggesting a potential upside of 33.43%. Given SPX’s higher probable upside, analysts plainly believe SPX is more favorable than WSI Industries.

Earnings & Valuation

This table compares WSI Industries and SPX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WSI Industries $34.60 million 0.60 $850,000.00 N/A N/A
SPX $1.43 billion 0.84 $89.30 million $1.78 15.44

SPX has higher revenue and earnings than WSI Industries.

Profitability

This table compares WSI Industries and SPX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WSI Industries 2.45% 4.03% 2.20%
SPX 6.79% 25.23% 4.19%

Institutional & Insider Ownership

9.1% of WSI Industries shares are owned by institutional investors. Comparatively, 86.5% of SPX shares are owned by institutional investors. 9.5% of WSI Industries shares are owned by company insiders. Comparatively, 1.6% of SPX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

SPX beats WSI Industries on 10 of the 13 factors compared between the two stocks.

About WSI Industries

WSI Industries, Inc. engages in the precision contract metal machining business in the United States. It manufactures metal components in medium to high volumes in accordance with customer specifications. The company serves aerospace/avionics/defense industries, recreational power sports vehicles, markets, energy industry, automotive industry, and bioscience industry. WSI Industries, Inc. was founded in 1950 and is headquartered in Monticello, Minnesota.

About SPX

SPX Corporation supplies infrastructure equipment serving the heating and ventilation (HVAC), detection and measurement, power transmission and generation, and industrial markets in the United States, China, South Africa, the United Kingdom, and internationally. It operates through three segments: HVAC, Detection and Measurement, and Engineered Solutions. The HVAC segment engineers, designs, manufactures, installs, and services cooling products for the HVAC and industrial markets, as well as boilers, comfort heating, and ventilation products for the residential and commercial markets. The Detection and Measurement segment offers underground pipe and cable locators, and inspection equipment, as well as bus fare collection systems, communication technologies, and specialty lighting products. The Engineered Solutions segment provides transformers for the power transmission and distribution markets; and process cooling equipment, as well as rotating and stationary heat exchangers for the industrial and power generation markets. This segment sells transformers for publicly and privately held utilities under the Waukesha brand name; and process cooling products and heat exchangers under the brand names of the SPX Cooling, Marley, Yuba, and Ecolaire. The company markets its products through various distribution channels, such as direct to customers, independent manufacturing representatives, third-party distributors, and retailers. SPX Corporation is headquartered in Charlotte, North Carolina.

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