Financial Analysis: Manitowoc Food Service (WBT) & Edgen Group (EDG)
Manitowoc Food Service (NYSE: WBT) and Edgen Group (NYSE:EDG) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This table compares Manitowoc Food Service and Edgen Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manitowoc Food Service||6.14%||-2,645.52%||5.23%|
This is a breakdown of recent ratings for Manitowoc Food Service and Edgen Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manitowoc Food Service||0||4||2||0||2.33|
Manitowoc Food Service currently has a consensus price target of $22.40, indicating a potential upside of 1.45%. Given Manitowoc Food Service’s higher possible upside, research analysts clearly believe Manitowoc Food Service is more favorable than Edgen Group.
Insider & Institutional Ownership
91.1% of Manitowoc Food Service shares are owned by institutional investors. 0.7% of Manitowoc Food Service shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Manitowoc Food Service and Edgen Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Manitowoc Food Service||$1.46 billion||2.11||$79.50 million||$0.64||34.50|
Manitowoc Food Service has higher revenue and earnings than Edgen Group. Edgen 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.
Manitowoc Food Service beats Edgen Group on 8 of the 9 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 Edgen Group
Edgen Group Inc. (Edgen Group) is a holding company. The Company is a distributor of specialty products to the energy sector, including highly engineered steel pipe, valves, quenched and tempered and high yield heavy plate and related components. Its segments include Energy and Infrastructure Products (E&I) and Oil Country Tubular Goods (OCTG). The Company primarily serve customers that operate in the upstream (conventional and unconventional exploration, drilling and production of oil and natural gas in both onshore and offshore environments), midstream (gathering, processing, fractionation, transportation and storage of oil and natural gas) and downstream (refining and petrochemical applications) end markets for oil and natural gas. It also serves power generation, civil construction and mining applications. In December 2012, the Company, through its subsidiary acquired HSP Group Limited (HSP).
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