Woodward (NASDAQ: WWD) and SPX FLOW (NYSE:FLOW) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Dividends

Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. SPX FLOW does not pay a dividend. Woodward pays out 15.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Woodward and SPX FLOW’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Woodward $2.08 billion 2.09 $342.57 million $3.17 22.35
SPX FLOW $1.89 billion 0.75 $190.40 million $0.11 305.48

Woodward has higher revenue and earnings than SPX FLOW. Woodward 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 Woodward and SPX FLOW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woodward 9.67% 16.12% 7.67%
SPX FLOW 0.26% 5.87% 1.76%

Insider & Institutional Ownership

71.3% of Woodward shares are held by institutional investors. Comparatively, 85.2% of SPX FLOW shares are held by institutional investors. 5.9% of Woodward shares are held by insiders. Comparatively, 3.0% of SPX FLOW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Woodward has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, SPX FLOW has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Woodward and SPX FLOW, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodward 0 4 5 0 2.56
SPX FLOW 1 1 2 0 2.25

Woodward currently has a consensus target price of $74.75, indicating a potential upside of 5.52%. SPX FLOW has a consensus target price of $32.67, indicating a potential downside of 2.78%. Given Woodward’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Woodward is more favorable than SPX FLOW.

Summary

Woodward beats SPX FLOW on 12 of the 16 factors compared between the two stocks.

Woodward Company Profile

Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.

SPX FLOW Company Profile

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.

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