Manitowoc Food Service (WBT) vs. Comfort Systems USA (FIX) Critical Review
Manitowoc Food Service (NYSE: WBT) and Comfort Systems USA (NYSE:FIX) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Risk & Volatility
Manitowoc Food Service has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Comfort Systems USA has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Manitowoc Food Service and Comfort Systems USA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manitowoc Food Service||0||4||3||0||2.43|
|Comfort Systems USA||0||2||2||0||2.50|
Manitowoc Food Service currently has a consensus target price of $22.33, suggesting a potential upside of 1.33%. Comfort Systems USA has a consensus target price of $83.00, suggesting a potential upside of 128.65%. Given Comfort Systems USA’s stronger consensus rating and higher probable upside, analysts plainly believe Comfort Systems USA is more favorable than Manitowoc Food Service.
Earnings & Valuation
This table compares Manitowoc Food Service and Comfort Systems USA’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Manitowoc Food Service||$1.46 billion||2.10||$265.30 million||$0.58||38.00|
|Comfort Systems USA||$1.67 billion||0.81||$129.25 million||$1.67||21.74|
Manitowoc Food Service has higher revenue, but lower earnings than Comfort Systems USA. Comfort Systems USA is trading at a lower price-to-earnings ratio than Manitowoc Food Service, indicating that it is currently the more affordable of the two stocks.
Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Manitowoc Food Service does not pay a dividend. Comfort Systems USA pays out 18.0% of its earnings in the form of a dividend. Manitowoc Food Service has increased its dividend for 4 consecutive years.
Insider and Institutional Ownership
87.9% of Manitowoc Food Service shares are held by institutional investors. Comparatively, 92.5% of Comfort Systems USA shares are held by institutional investors. 0.7% of Manitowoc Food Service shares are held by insiders. Comparatively, 3.5% of Comfort Systems USA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Manitowoc Food Service and Comfort Systems USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manitowoc Food Service||5.57%||-280.03%||5.02%|
|Comfort Systems USA||3.77%||16.52%||8.35%|
Comfort Systems USA beats Manitowoc Food Service on 9 of the 17 factors compared between the two stocks.
About Manitowoc Food Service
Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.
About Comfort Systems USA
Comfort Systems USA, Inc. is a provider of mechanical contracting services, which principally includes heating, ventilation and air conditioning (HVAC), plumbing, piping and controls, as well as off-site construction, electrical, monitoring and fire protection. As of December 31, 2016, the Company installed, maintained, repaired and replaced products and systems throughout its 35 operating units in 84 cities and 91 locations throughout the United States. The Company operates primarily in the commercial, industrial and institutional HVAC markets and offers services in the industrial, healthcare, education, office, technology, retail and government facilities. The Company provides a range of construction, renovation, expansion, maintenance, repair and replacement services for mechanical and related systems in commercial, industrial and institutional properties. The Company also provides remote monitoring of temperature, pressure, humidity and air flow for HVAC systems.
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