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

Insider & Institutional Ownership

71.5% of Raven Industries shares are owned by institutional investors. Comparatively, 91.5% of Icahn Enterprises L.P. shares are owned by institutional investors. 1.8% of Raven Industries shares are owned by company insiders. Comparatively, 90.1% of Icahn Enterprises L.P. shares are owned by company 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.

Valuation & Earnings

This table compares Raven Industries and Icahn Enterprises L.P.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Raven Industries $302.57 million 4.21 $56.53 million $0.74 47.64
Icahn Enterprises L.P. N/A N/A N/A $7.85 6.65

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

Profitability

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

Net Margins Return on Equity Return on Assets
Raven Industries 8.85% 10.32% 8.89%
Icahn Enterprises L.P. 6.35% 15.51% 4.18%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Raven Industries and Icahn Enterprises L.P., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Raven Industries 0 1 1 0 2.50
Icahn Enterprises L.P. 0 0 1 0 3.00

Raven Industries currently has a consensus target price of $33.00, indicating a potential downside of 6.38%. Icahn Enterprises L.P. has a consensus target price of $61.00, indicating a potential upside of 16.84%. Given Icahn Enterprises L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe Icahn Enterprises L.P. is more favorable than Raven Industries.

Dividends

Raven Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Icahn Enterprises L.P. pays an annual dividend of $4.50 per share and has a dividend yield of 8.6%. Raven Industries pays out 70.3% of its earnings in the form of a dividend. Icahn Enterprises L.P. pays out 57.3% 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. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Raven Industries has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Icahn Enterprises L.P. has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Summary

Icahn Enterprises L.P. beats Raven Industries on 9 of the 13 factors compared between the two stocks.

Raven Industries Company Profile

Raven Industries, Inc. is a diversified technology company providing a range of products to customers within the industrial, agricultural, energy, construction and defense markets. The Company operates through three segments: Applied Technology Division (Applied Technology), Engineered Films Division (Engineered Films) and Aerostar Division (Aerostar). The Applied Technology segment designs, manufactures, sells and services precision agriculture products and information management tools for growers. The Engineered Films segment produces plastic films and sheeting for energy, agricultural, construction, geomembrane and industrial applications. The Aerostar segment designs and manufactures products, including balloons, tethered aerostats and radar processing systems. It conducts business through its subsidiaries, including Aerostar International, Inc. (Aerostar), Vista Research, Inc. (Vista), Raven International Holding Company BV (Raven Holdings) and Raven Industries Canada, Inc.

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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