Critical Comparison: SPX (SPXC) & Dover (DOV)
SPX (NYSE: SPXC) and Dover (NYSE:DOV) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
This table compares SPX and Dover’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dover pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. SPX does not pay a dividend. Dover pays out 43.7% of its earnings in the form of a dividend. Dover has raised its dividend for 61 consecutive years.
This is a summary of current recommendations and price targets for SPX and Dover, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dover has a consensus price target of $94.82, indicating a potential downside of 2.73%. Given Dover’s higher probable upside, analysts clearly believe Dover is more favorable than SPX.
Valuation & Earnings
This table compares SPX and Dover’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SPX||$1.47 billion||0.89||-$67.20 million||($1.36)||-22.57|
|Dover||$6.79 billion||2.24||$508.89 million||$4.30||22.67|
Dover has higher revenue and earnings than SPX. SPX is trading at a lower price-to-earnings ratio than Dover, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
SPX has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Dover has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Institutional and Insider Ownership
87.4% of SPX shares are owned by institutional investors. Comparatively, 84.6% of Dover shares are owned by institutional investors. 0.6% of SPX shares are owned by company insiders. Comparatively, 2.5% of Dover shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dover beats SPX on 12 of the 16 factors compared between the two stocks.
SPX Company Profile
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.
Dover Company Profile
Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.
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