Flow International Corp (NASDAQ: FLOW) and Tennant (NYSE:TNC) are both small-cap industrial machinery companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Flow International Corp and Tennant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flow International Corp 1 2 5 0 2.50
Tennant 0 3 0 0 2.00

Flow International Corp currently has a consensus target price of $43.00, indicating a potential upside of 964.36%. Tennant has a consensus target price of $65.00, indicating a potential upside of 4.42%. Given Flow International Corp’s stronger consensus rating and higher probable upside, analysts plainly believe Flow International Corp is more favorable than Tennant.

Dividends

Tennant pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. Flow International Corp does not pay a dividend. Tennant pays out 123.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flow International Corp has increased its dividend for 45 consecutive years.

Insider & Institutional Ownership

88.2% of Tennant shares are owned by institutional investors. 5.7% of Tennant shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Flow International Corp and Tennant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flow International Corp N/A N/A N/A
Tennant 1.32% 13.07% 5.07%

Earnings & Valuation

This table compares Flow International Corp and Tennant’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Flow International Corp N/A N/A N/A $0.04 101.00
Tennant $808.57 million 1.37 $46.61 million $0.68 91.54

Tennant has higher revenue and earnings than Flow International Corp. Tennant is trading at a lower price-to-earnings ratio than Flow International Corp, indicating that it is currently the more affordable of the two stocks.

Summary

Tennant beats Flow International Corp on 8 of the 13 factors compared between the two stocks.

About Flow International Corp

SPX FLOW, Inc. provides various engineered solutions worldwide. The company engineers, designs, manufactures, and markets products and solutions used to process, blend, filter, dry, meter, and transport fluids with a focus on original equipment installation, including turn-key systems, modular systems, and components, as well as aftermarket components and support services. It operates through three segments: Food and Beverage, Power and Energy, and Industrial. The Food and Beverage segment offers mixing, drying, evaporation, and separation systems and components; heat exchangers, and reciprocating and centrifugal pump technologies; and turn-key systems primarily under the Anhydro, APV, Bran+Luebbe, Gerstenberg Schroeder, LIGHTNIN, Seital, and Waukesha Cherry-Burrell brands. The Power and Energy segment provides pumps, valves, and related accessories primarily for customers in oil and gas, and nuclear and other conventional power industries under the APV, Bran+Luebbe, ClydeUnion Pumps, Copes-Vulcan, Dollinger Filtration, LIGHTNIN, M&J Valve, Plenty, and Vokes brands. The Industrial segment offers air dryers, filtration equipment, mixers, pumps, hydraulic technologies, and heat exchangers under the Airpel, APV, Bolting Systems, Delair, Deltech, Hankison, Jemaco, Johnson Pump, LIGHTNIN, Power Team, and Stone brands. It primarily serves customers in chemical, air treatment, mining, pharmaceutical, marine, shipbuilding, infrastructure construction, general industrial, and water treatment industries. SPX FLOW, Inc. is headquartered in Charlotte, North Carolina.

About Tennant

Tennant Company is engaged in designing, manufacturing and marketing of cleaning solutions. The Company’s segments are Americas; Europe, Middle East, Africa, and Asia Pacific. The Company offers a range of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Its products are used in various types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets. The Company markets and sells its products under various brands: Tennant, Nobles, Green Machines, Alfa Uma Empresa Tennant, IRIS, Orbio IPC, IPC Foma, IPC Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Ready System, Euromop, and Pulex.

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