Contrasting Welbilt (WBT) & Dover (DOV)
Welbilt (NYSE: WBT) and Dover (NYSE:DOV) are both mid-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Institutional and Insider Ownership
91.1% of Welbilt shares are held by institutional investors. Comparatively, 84.5% of Dover shares are held by institutional investors. 0.7% of Welbilt shares are held by company insiders. Comparatively, 2.5% of Dover shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Welbilt 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 1.8%. Welbilt does not pay a dividend. Dover pays out 43.7% of its earnings in the form of a dividend. Welbilt has raised its dividend for 62 consecutive years.
Earnings and Valuation
This table compares Welbilt and Dover’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Welbilt||$1.46 billion||2.21||$79.50 million||$0.64||36.14|
|Dover||$6.79 billion||2.39||$508.89 million||$4.30||24.22|
Dover has higher revenue and earnings than Welbilt. Dover is trading at a lower price-to-earnings ratio than Welbilt, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Welbilt and Dover, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Welbilt presently has a consensus price target of $23.40, indicating a potential upside of 1.17%. Dover has a consensus price target of $96.73, indicating a potential downside of 7.12%. Given Welbilt’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Welbilt is more favorable than Dover.
Volatility and Risk
Welbilt has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, Dover has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Dover beats Welbilt on 10 of the 17 factors compared between the two stocks.
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.
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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