Omega Flex (OFLX) vs. Watts Water Technologies (WTS) Head-To-Head Analysis
Omega Flex (NASDAQ: OFLX) and Watts Water Technologies (NYSE:WTS) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Omega Flex pays an annual dividend of $0.88 per share and has a dividend yield of 1.6%. Watts Water Technologies pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Omega Flex pays out 56.8% of its earnings in the form of a dividend. Watts Water Technologies pays out 35.8% 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. Omega Flex has raised its dividend for 5 consecutive years. Omega Flex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
24.2% of Omega Flex shares are held by institutional investors. Comparatively, 78.2% of Watts Water Technologies shares are held by institutional investors. 44.9% of Omega Flex shares are held by company insiders. Comparatively, 1.1% of Watts Water Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Omega Flex has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Watts Water Technologies has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
This table compares Omega Flex and Watts Water Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Watts Water Technologies||5.02%||13.07%||6.03%|
Valuation & Earnings
This table compares Omega Flex and Watts Water Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Omega Flex||$101.80 million||5.45||$15.66 million||$1.55||35.50|
|Watts Water Technologies||$1.46 billion||1.77||$84.20 million||$2.12||35.66|
Watts Water Technologies has higher revenue and earnings than Omega Flex. Omega Flex is trading at a lower price-to-earnings ratio than Watts Water Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Omega Flex and Watts Water Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Watts Water Technologies||0||6||4||0||2.40|
Watts Water Technologies has a consensus target price of $76.00, indicating a potential upside of 0.53%. Given Watts Water Technologies’ higher probable upside, analysts plainly believe Watts Water Technologies is more favorable than Omega Flex.
Omega Flex Company Profile
Omega Flex, Inc. is a manufacturer of flexible metal hose. The Company is engaged in a range of different markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical and other industries. It operates through manufacture and sale of flexible metal hose and accessories segment. Its products are concentrated in residential and commercial construction, and general industrial markets. Its primary product, flexible gas piping, is used for gas piping within residential and commercial buildings. Its TracPipe and TracPipe CounterStrike flexible gas piping, along with its fittings, which are distributed under AutoSnap and AutoFlare names. Its products are manufactured at its Exton, Pennsylvania facilities in the United States, and in Banbury, Oxfordshire in the United Kingdom. It has sales across all industries are generated through independent outside sales organizations, such as sales representatives, wholesalers and distributors or a combination of both.
Watts Water Technologies Company Profile
Watts Water Technologies, Inc. is a supplier of products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The Company, through its subsidiary, Watts Regulator Co., is engaged in manufacturing products and systems focused on the control, conservation and quality of water, and safety of the people using it. Its segments include Americas, Middle East and Africa and Asia-Pacific. It four product lines include: residential and commercial flow control products, which include products for plumbing and hot water applications; heating, ventilation and air conditioning and gas products, which include boilers, water heaters and heating solutions; drainage and water re-use products, which include drainage products and engineered rain water harvesting solutions, and water quality products, which include point-of-use and point-of-entry water filtration, conditioning and scale prevention systems.
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