Barnes Group (B) vs. SPX Corporation (SPXC) Critical Review
Barnes Group (NYSE: B) and SPX Corporation (NYSE:SPXC) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.
Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. SPX Corporation does not pay a dividend. Barnes Group pays out 19.6% of its earnings in the form of a dividend. Barnes Group has increased its dividend for 4 consecutive years.
This table compares Barnes Group and SPX Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Barnes Group and SPX Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Barnes Group currently has a consensus price target of $63.00, indicating a potential downside of 0.43%. Given Barnes Group’s higher probable upside, equities research analysts plainly believe Barnes Group is more favorable than SPX Corporation.
Institutional and Insider Ownership
85.3% of Barnes Group shares are owned by institutional investors. Comparatively, 85.4% of SPX Corporation shares are owned by institutional investors. 8.5% of Barnes Group shares are owned by insiders. Comparatively, 0.6% of SPX Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Barnes Group and SPX Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Barnes Group||$1.34 billion||2.54||$305.46 million||$2.86||22.12|
|SPX Corporation||$1.43 billion||0.73||$88.70 million||($1.83)||-13.34|
Barnes Group has higher revenue, but lower earnings than SPX Corporation. SPX Corporation is trading at a lower price-to-earnings ratio than Barnes Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Barnes Group has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, SPX Corporation has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Barnes Group beats SPX Corporation on 11 of the 16 factors compared between the two stocks.
About Barnes Group
Barnes Group Inc. is an industrial and aerospace manufacturer and service provider, serving a range of end markets and customers. The Company’s engineered products, industrial technologies, and solutions are used in applications that provide transportation, manufacturing, healthcare products and technology to the world. Its segments include Industrial and Aerospace. The Industrial segment is engaged in the manufacturing of precision parts, products and systems for applications serving a customer base in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices and energy. The Industrial segment includes the Molding Solutions, Nitrogen Gas Products and Engineered Components business units. The Aerospace segment includes the original equipment manufacturer (OEM) business and the aftermarket business, which includes maintenance repair and overhaul services and the manufacture and delivery of aerospace aftermarket spare parts.
About SPX Corporation
SPX Corporation is a global supplier of infrastructure equipment. The Company operates through three segments: HVAC; Detection and Measurement, and Engineered Solutions. The HVAC solutions offered by its businesses include package cooling towers, residential and commercial boilers, heating and ventilation products. Its detection and measurement product lines encompass underground pipe and cable locators, and inspection equipment. Within its power platform, it is a manufacturer of medium and large power transformers, as well as equipment for various types of power plant, including cooling equipment, heat exchangers and pollution control systems. As of December 31, 2016, the Company had operations in approximately 15 countries.
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