Watts Water Technologies (WTS) and Omega Flex (OFLX) Head to Head Analysis

Watts Water Technologies (NYSE: WTS) and Omega Flex (NASDAQ:OFLX) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

78.2% of Watts Water Technologies shares are held by institutional investors. Comparatively, 24.2% of Omega Flex shares are held by institutional investors. 1.1% of Watts Water Technologies shares are held by insiders. Comparatively, 44.9% of Omega Flex shares are held by 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.

Dividends

Watts Water Technologies pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Omega Flex pays an annual dividend of $0.88 per share and has a dividend yield of 1.6%. Watts Water Technologies pays out 28.1% of its earnings in the form of a dividend. Omega Flex pays out 56.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Watts Water Technologies has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Watts Water Technologies and Omega Flex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Watts Water Technologies 0 6 3 0 2.33
Omega Flex 0 0 0 0 N/A

Watts Water Technologies presently has a consensus target price of $77.00, indicating a potential upside of 4.05%. Given Watts Water Technologies’ higher possible upside, research analysts clearly believe Watts Water Technologies is more favorable than Omega Flex.

Valuation and Earnings

This table compares Watts Water Technologies and Omega Flex’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Watts Water Technologies $1.40 billion 1.81 $84.20 million $2.70 27.41
Omega Flex $101.80 million 5.51 $15.66 million $1.55 35.87

Watts Water Technologies has higher revenue and earnings than Omega Flex. Watts Water Technologies is trading at a lower price-to-earnings ratio than Omega Flex, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Watts Water Technologies has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Omega Flex has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Watts Water Technologies and Omega Flex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Watts Water Technologies 6.49% 12.90% 5.78%
Omega Flex 15.39% 30.21% 23.14%

Summary

Watts Water Technologies beats Omega Flex on 9 of the 16 factors compared between the two stocks.

Watts Water Technologies Company Profile

Watts Water Technologies, Inc. is a supplier of products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The Company, through its subsidiary, Watts Regulator Co., is engaged in manufacturing products and systems focused on the control, conservation and quality of water, and safety of the people using it. Its segments include Americas, Middle East and Africa and Asia-Pacific. It four product lines include: residential and commercial flow control products, which include products for plumbing and hot water applications; heating, ventilation and air conditioning and gas products, which include boilers, water heaters and heating solutions; drainage and water re-use products, which include drainage products and engineered rain water harvesting solutions, and water quality products, which include point-of-use and point-of-entry water filtration, conditioning and scale prevention systems.

Omega Flex Company Profile

Omega Flex, Inc. is a manufacturer of flexible metal hose. The Company is engaged in a range of different markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical and other industries. It operates through manufacture and sale of flexible metal hose and accessories segment. Its products are concentrated in residential and commercial construction, and general industrial markets. Its primary product, flexible gas piping, is used for gas piping within residential and commercial buildings. Its TracPipe and TracPipe CounterStrike flexible gas piping, along with its fittings, which are distributed under AutoSnap and AutoFlare names. Its products are manufactured at its Exton, Pennsylvania facilities in the United States, and in Banbury, Oxfordshire in the United Kingdom. It has sales across all industries are generated through independent outside sales organizations, such as sales representatives, wholesalers and distributors or a combination of both.

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