DCI vs. XYL, DOV, IEX, SNA, GGG, PNR, NDSN, SWK, WWD, and LECO
Should you be buying Donaldson stock or one of its competitors? The main competitors of Donaldson include Xylem (XYL), Dover (DOV), IDEX (IEX), Snap-on (SNA), Graco (GGG), Pentair (PNR), Nordson (NDSN), Stanley Black & Decker (SWK), Woodward (WWD), and Lincoln Electric (LECO). These companies are all part of the "industrial machinery" industry.
Donaldson (NYSE:DCI) and Xylem (NYSE:XYL) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, community ranking, risk, media sentiment and profitability.
Donaldson presently has a consensus target price of $67.50, suggesting a potential downside of 8.39%. Xylem has a consensus target price of $143.36, suggesting a potential upside of 1.66%. Given Xylem's stronger consensus rating and higher possible upside, analysts plainly believe Xylem is more favorable than Donaldson.
Xylem has higher revenue and earnings than Donaldson. Donaldson is trading at a lower price-to-earnings ratio than Xylem, indicating that it is currently the more affordable of the two stocks.
In the previous week, Xylem had 9 more articles in the media than Donaldson. MarketBeat recorded 18 mentions for Xylem and 9 mentions for Donaldson. Donaldson's average media sentiment score of 0.74 beat Xylem's score of 0.65 indicating that Donaldson is being referred to more favorably in the media.
Donaldson has a net margin of 10.82% compared to Xylem's net margin of 8.34%. Donaldson's return on equity of 28.52% beat Xylem's return on equity.
Xylem received 48 more outperform votes than Donaldson when rated by MarketBeat users. However, 64.69% of users gave Donaldson an outperform vote while only 62.97% of users gave Xylem an outperform vote.
Donaldson pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Xylem pays an annual dividend of $1.44 per share and has a dividend yield of 1.0%. Donaldson pays out 32.6% of its earnings in the form of a dividend. Xylem pays out 51.2% 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. Donaldson is clearly the better dividend stock, given its higher yield and lower payout ratio.
Donaldson has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Xylem has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
82.8% of Donaldson shares are held by institutional investors. Comparatively, 88.0% of Xylem shares are held by institutional investors. 2.6% of Donaldson shares are held by company insiders. Comparatively, 0.3% of Xylem shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Donaldson and Xylem tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DCI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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