Manitowoc Food Service (NYSE: WBT) and Barnes Group (NYSE:B) are both mid-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

87.8% of Manitowoc Food Service shares are held by institutional investors. Comparatively, 87.6% of Barnes Group shares are held by institutional investors. 0.7% of Manitowoc Food Service shares are held by insiders. Comparatively, 8.5% of Barnes Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Manitowoc Food Service and Barnes Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manitowoc Food Service 0 4 3 0 2.43
Barnes Group 0 3 3 0 2.50

Manitowoc Food Service currently has a consensus price target of $22.33, suggesting a potential upside of 2.78%. Barnes Group has a consensus price target of $65.60, suggesting a potential upside of 1.97%. Given Manitowoc Food Service’s higher probable upside, equities analysts plainly believe Manitowoc Food Service is more favorable than Barnes Group.

Valuation & Earnings

This table compares Manitowoc Food Service and Barnes Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manitowoc Food Service $1.46 billion 2.07 $265.30 million $0.58 37.47
Barnes Group $1.34 billion 2.58 $305.46 million $2.84 22.65

Barnes Group has higher revenue, but lower earnings than Manitowoc Food Service. Barnes Group 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.

Dividends

Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Manitowoc Food Service does not pay a dividend. Barnes Group pays out 19.7% of its earnings in the form of a dividend. Manitowoc Food Service has raised its dividend for 4 consecutive years.

Profitability

This table compares Manitowoc Food Service and Barnes Group’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%
Barnes Group 11.20% 12.44% 6.96%

Volatility and Risk

Manitowoc Food Service has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500. Comparatively, Barnes Group has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Summary

Barnes Group beats Manitowoc Food Service on 9 of the 16 factors compared between the two stocks.

Manitowoc Food Service Company Profile

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.

Barnes Group Company Profile

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.

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