Carlisle Companies (NYSE: CSL) and Icahn Enterprises L.P. (NASDAQ:IEP) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Institutional and Insider Ownership

88.6% of Carlisle Companies shares are held by institutional investors. Comparatively, 96.8% of Icahn Enterprises L.P. shares are held by institutional investors. 2.1% of Carlisle Companies shares are held by insiders. Comparatively, 90.1% of Icahn Enterprises L.P. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Carlisle Companies and Icahn Enterprises L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carlisle Companies 0 3 5 0 2.63
Icahn Enterprises L.P. 0 0 1 0 3.00

Carlisle Companies presently has a consensus target price of $122.00, indicating a potential upside of 18.75%. Icahn Enterprises L.P. has a consensus target price of $61.00, indicating a potential upside of 9.12%. Given Carlisle Companies’ higher probable upside, analysts plainly believe Carlisle Companies is more favorable than Icahn Enterprises L.P..

Valuation and Earnings

This table compares Carlisle Companies and Icahn Enterprises L.P.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Carlisle Companies $3.81 billion 1.70 $723.50 million $3.53 29.10
Icahn Enterprises L.P. N/A N/A N/A $7.85 7.12

Carlisle Companies has higher revenue and earnings than Icahn Enterprises L.P.. Icahn Enterprises L.P. is trading at a lower price-to-earnings ratio than Carlisle Companies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Carlisle Companies and Icahn Enterprises L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carlisle Companies 6.04% 15.18% 9.26%
Icahn Enterprises L.P. 6.35% 15.51% 4.18%

Dividends

Carlisle Companies pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. Icahn Enterprises L.P. pays an annual dividend of $3.00 per share and has a dividend yield of 5.4%. Carlisle Companies pays out 41.9% of its earnings in the form of a dividend. Icahn Enterprises L.P. pays out 38.2% 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. Icahn Enterprises L.P. has raised its dividend for 40 consecutive years. Icahn Enterprises L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Carlisle Companies has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Icahn Enterprises L.P. has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Summary

Icahn Enterprises L.P. beats Carlisle Companies on 10 of the 14 factors compared between the two stocks.

Carlisle Companies Company Profile

Carlisle Companies Incorporated is a manufacturing company. The Company designs, manufactures and markets a range of products that serve a range of markets, including commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, medical technology, transportation, general industrial, protective coatings, wood, auto refinishing, foodservice, and healthcare and sanitary maintenance. The Company operates through five segments: Carlisle Construction Materials (Construction Materials); Carlisle Interconnect Technologies (Interconnect Technologies); Carlisle Fluid Technologies (Fluid Technologies); Carlisle Brake & Friction (Brake & Friction), and Carlisle FoodService Products (FoodService Products). The Company markets its products as a component supplier to original equipment manufacturers and distributors, among others.

Icahn Enterprises L.P. Company Profile

Icahn Enterprises L.P. (Icahn Enterprises) is a holding company. The Company’s segments include Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Mining, Real Estate and Home Fashion. The Company’s Investment segment includes various private investment funds. The Company operates its Automotive segment through its ownership in Federal-Mogul Holdings Corporation and IEH Auto Parts Holding LLC. The Company operates Energy segment through its controlling interest in CVR Energy, Inc. It operates its Metals segment through its subsidiary, PSC Metals, Inc. The Company operates its Railcar segment through its ownership interests in American Railcar Industries, Inc. Its Food Packaging segment consists of ownership in Viskase Companies, Inc. The Company’s Real Estate operations consist of rental real estate, property development and associated resorts. It also owns a limited partner interest in Icahn Enterprises Holdings L.P. (Icahn Enterprises Holdings).

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