SPX FLOW (NYSE: FLOW) and Milacron Holdings Corp. (NYSE:MCRN) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Volatility & Risk

SPX FLOW has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500. Comparatively, Milacron Holdings Corp. has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares SPX FLOW and Milacron Holdings Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SPX FLOW $1.89 billion 0.94 $190.40 million $0.11 379.67
Milacron Holdings Corp. $1.18 billion 1.09 $188.00 million ($0.10) -185.48

SPX FLOW has higher revenue and earnings than Milacron Holdings Corp.. Milacron Holdings Corp. is trading at a lower price-to-earnings ratio than SPX FLOW, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SPX FLOW and Milacron Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPX FLOW 0.26% 5.87% 1.76%
Milacron Holdings Corp. -0.57% -53.40% 6.51%

Analyst Ratings

This is a summary of recent recommendations for SPX FLOW and Milacron Holdings Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX FLOW 1 1 2 0 2.25
Milacron Holdings Corp. 0 0 2 0 3.00

SPX FLOW presently has a consensus price target of $38.00, suggesting a potential downside of 9.00%. Milacron Holdings Corp. has a consensus price target of $22.00, suggesting a potential upside of 18.60%. Given Milacron Holdings Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe Milacron Holdings Corp. is more favorable than SPX FLOW.

Institutional & Insider Ownership

85.2% of SPX FLOW shares are held by institutional investors. Comparatively, 99.2% of Milacron Holdings Corp. shares are held by institutional investors. 3.0% of SPX FLOW shares are held by insiders. Comparatively, 3.4% of Milacron Holdings Corp. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

About SPX FLOW

SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.

About Milacron Holdings Corp.

Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.

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