AOS vs. LECO, PNR, TTEK, GGG, SWK, ALLE, CNHI, RRX, AMCR, and CCK
Should you be buying A. O. Smith stock or one of its competitors? The main competitors of A. O. Smith include Lincoln Electric (LECO), Pentair (PNR), Tetra Tech (TTEK), Graco (GGG), Stanley Black & Decker (SWK), Allegion (ALLE), CNH Industrial (CNHI), Regal Rexnord (RRX), Amcor (AMCR), and Crown (CCK). These companies are all part of the "industrial products" sector.
Lincoln Electric (NASDAQ:LECO) and A. O. Smith (NYSE:AOS) are both large-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, community ranking, valuation, analyst recommendations, media sentiment, institutional ownership, earnings, dividends and profitability.
In the previous week, Lincoln Electric had 4 more articles in the media than A. O. Smith. MarketBeat recorded 11 mentions for Lincoln Electric and 7 mentions for A. O. Smith. A. O. Smith's average media sentiment score of 1.28 beat Lincoln Electric's score of 1.08 indicating that Lincoln Electric is being referred to more favorably in the media.
79.6% of Lincoln Electric shares are held by institutional investors. Comparatively, 76.1% of A. O. Smith shares are held by institutional investors. 2.6% of Lincoln Electric shares are held by insiders. Comparatively, 2.7% of A. O. Smith 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.
Lincoln Electric has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
A. O. Smith has a net margin of 14.94% compared to A. O. Smith's net margin of 13.23%. A. O. Smith's return on equity of 43.81% beat Lincoln Electric's return on equity.
Lincoln Electric pays an annual dividend of $2.84 per share and has a dividend yield of 1.2%. A. O. Smith pays an annual dividend of $1.28 per share and has a dividend yield of 1.5%. Lincoln Electric pays out 30.1% of its earnings in the form of a dividend. A. O. Smith pays out 33.2% 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. Lincoln Electric has raised its dividend for 29 consecutive years and A. O. Smith has raised its dividend for 30 consecutive years. A. O. Smith is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
A. O. Smith has lower revenue, but higher earnings than Lincoln Electric. A. O. Smith is trading at a lower price-to-earnings ratio than Lincoln Electric, indicating that it is currently the more affordable of the two stocks.
Lincoln Electric currently has a consensus price target of $228.00, indicating a potential downside of 1.10%. A. O. Smith has a consensus price target of $90.67, indicating a potential upside of 4.41%. Given Lincoln Electric's higher probable upside, analysts clearly believe A. O. Smith is more favorable than Lincoln Electric.
A. O. Smith received 21 more outperform votes than Lincoln Electric when rated by MarketBeat users. Likewise, 62.28% of users gave A. O. Smith an outperform vote while only 59.51% of users gave Lincoln Electric an outperform vote.
Summary
A. O. Smith beats Lincoln Electric on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AOS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis 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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