Paul Mueller (OTCMKTS:MUEL) vs. Ferguson (NYSE:FERG) Critical Survey

Ferguson (NYSE:FERG) and Paul Mueller (OTCMKTS:MUEL) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Earnings and Valuation

This table compares Ferguson and Paul Mueller”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ferguson	$30.76 billion	1.45	$1.86 billion	$9.90	23.07
Paul Mueller	$248.59 million	1.40	$29.67 million	$40.20	9.64

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

Volatility and Risk

Ferguson has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Paul Mueller has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Ferguson and Paul Mueller, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ferguson	0	7	12	2	2.76
Paul Mueller	0	0	0	0	0.00

Ferguson presently has a consensus price target of $250.47, indicating a potential upside of 9.65%. Given Ferguson’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ferguson is more favorable than Paul Mueller.

Insider & Institutional Ownership

82.0% of Ferguson shares are held by institutional investors. 0.2% of Ferguson shares are held by insiders. Comparatively, 4.0% of Paul Mueller shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ferguson and Paul Mueller’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ferguson	6.28%	35.73%	11.82%
Paul Mueller	12.37%	36.21%	18.19%

Dividends

Ferguson pays an annual dividend of $3.32 per share and has a dividend yield of 1.5%. Paul Mueller pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Ferguson pays out 33.5% of its earnings in the form of a dividend. Paul Mueller pays out 3.0% 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.

Summary

Ferguson beats Paul Mueller on 11 of the 17 factors compared between the two stocks.

About Ferguson

Ferguson Enterprises Inc. distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers. It also supplies specialist water and wastewater treatment products to residential, commercial, and infrastructure contractors, as well as supplies pipe, valves, and fittings solutions to industrial customers. In addition, it offers customized solutions, such as virtual design, fabrication, valve actuation, pre-assembly, kitting, installation, and project management services, as well as after-sales support that comprises warranty, credit, project-based billing, returns and maintenance, and repair and operations support. The company sells its products through a network of distribution centers, branches, counter service and specialist sales associates, showroom consultants, and e-commerce channels. Ferguson Enterprises Inc. was founded in 1953 and is headquartered in Newport News, Virginia.

About Paul Mueller

Paul Mueller Company, together with its subsidiaries, provides manufactured equipment and components in the United States, North America, Asia, the Far East, the Netherlands, EU countries, Europe, and internationally. The company operates through four reportable segments: Dairy Farm Equipment, Industrial Equipment, Field Fabrication, and Transportation. The Dairy Farm Equipment segment offers milk cooling and storage equipment and accessories, refrigeration units, and heat recovery equipment for use on dairy farms to independent dealers for resale, and directly to farmers; and services for farmers, as well as milk coolers for rent to farmers. The Industrial Equipment segment sells food, beverage, chemical, and industrial processing equipment; and biopharmaceutical and pure water equipment, as well as stainless steel, alloy processing, storage tanks, and heat transfer products. The Field Fabrication segment sells large, field-fabricated tanks and vessels, such as stainless steel storage tanks for sanitary and industrial process applications. The Transportation segment offers delivery of products to customers; backhauls of materials and components; and contract carriage for third parties. It serves its products in various industries, including animal health, beverage, brewing, chemical, dairy farm, dairy processing, food, heat transfer, HVAC, industrial construction, oil and gas, personal care, pharmaceutical, pure water, tank fabrication, and wine. The company was founded in 1940 and is headquartered in Springfield, Missouri.