Ingersoll-Rand PLC (Ireland) (IR) versus KLX (KLXI) Critical Analysis
Ingersoll-Rand PLC (Ireland) (NYSE: IR) and KLX (NASDAQ:KLXI) are both mid-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
This is a summary of current ratings and target prices for Ingersoll-Rand PLC (Ireland) and KLX, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ingersoll-Rand PLC (Ireland)||0||6||5||0||2.45|
Ingersoll-Rand PLC (Ireland) presently has a consensus target price of $99.83, suggesting a potential upside of 11.62%. KLX has a consensus target price of $55.00, suggesting a potential upside of 14.01%. Given KLX’s stronger consensus rating and higher probable upside, analysts plainly believe KLX is more favorable than Ingersoll-Rand PLC (Ireland).
Ingersoll-Rand PLC (Ireland) pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. KLX does not pay a dividend. Ingersoll-Rand PLC (Ireland) pays out 44.8% of its earnings in the form of a dividend. KLX has raised its dividend for 6 consecutive years.
This table compares Ingersoll-Rand PLC (Ireland) and KLX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ingersoll-Rand PLC (Ireland)||7.60%||16.64%||6.40%|
Insider & Institutional Ownership
80.6% of Ingersoll-Rand PLC (Ireland) shares are held by institutional investors. 0.7% of Ingersoll-Rand PLC (Ireland) shares are held by company insiders. Comparatively, 1.8% of KLX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Ingersoll-Rand PLC (Ireland) has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, KLX has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ingersoll-Rand PLC (Ireland) and KLX’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ingersoll-Rand PLC (Ireland)||$13.84 billion||1.64||$1.98 billion||$4.02||22.25|
|KLX||$1.60 billion||1.55||$240.70 million||$1.50||32.16|
Ingersoll-Rand PLC (Ireland) has higher revenue and earnings than KLX. Ingersoll-Rand PLC (Ireland) is trading at a lower price-to-earnings ratio than KLX, indicating that it is currently the more affordable of the two stocks.
Ingersoll-Rand PLC (Ireland) beats KLX on 11 of the 17 factors compared between the two stocks.
About Ingersoll-Rand PLC (Ireland)
Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.
KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.
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