Snap-On (NYSE: SNA) and SPX Corp (NASDAQ:SPXC) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

95.0% of Snap-On shares are held by institutional investors. 3.7% of Snap-On shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Snap-On pays an annual dividend of $2.84 per share and has a dividend yield of 1.8%. SPX Corp does not pay a dividend. Snap-On pays out 29.1% of its earnings in the form of a dividend. Snap-On has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Snap-On and SPX Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Snap-On $3.43 billion 2.63 $546.40 million $9.75 16.23
SPX Corp N/A N/A N/A N/A N/A

Snap-On has higher revenue and earnings than SPX Corp.

Profitability

This table compares Snap-On and SPX Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Snap-On 15.95% 20.82% 11.72%
SPX Corp -2.37% -15.86% -1.74%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Snap-On and SPX Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap-On 0 2 6 0 2.75
SPX Corp 0 0 0 0 N/A

Snap-On presently has a consensus target price of $192.00, suggesting a potential upside of 21.35%. Given Snap-On’s higher probable upside, research analysts plainly believe Snap-On is more favorable than SPX Corp.

Summary

Snap-On beats SPX Corp on 10 of the 11 factors compared between the two stocks.

About Snap-On

Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company’s segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.

About SPX Corp

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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