Shengkai Innovations (OTCMKTS:VALV) and Watts Water Technologies (NYSE:WTS) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Risk & Volatility
Shengkai Innovations has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Watts Water Technologies has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Insider and Institutional Ownership
76.0% of Watts Water Technologies shares are owned by institutional investors. 0.2% of Shengkai Innovations shares are owned by company insiders. Comparatively, 1.1% of Watts Water Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Watts Water Technologies pays an annual dividend of $0.84 per share and has a dividend yield of 1.1%. Shengkai Innovations does not pay a dividend. Watts Water Technologies pays out 27.8% of its earnings in the form of a dividend. Watts Water Technologies has increased its dividend for 5 consecutive years.
This is a breakdown of current ratings and target prices for Shengkai Innovations and Watts Water Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Watts Water Technologies||0||4||3||0||2.43|
Watts Water Technologies has a consensus target price of $91.25, indicating a potential upside of 23.71%. Given Watts Water Technologies’ higher possible upside, analysts plainly believe Watts Water Technologies is more favorable than Shengkai Innovations.
This table compares Shengkai Innovations and Watts Water Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Watts Water Technologies||6.05%||14.43%||7.36%|
Valuation & Earnings
This table compares Shengkai Innovations and Watts Water Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Watts Water Technologies||$1.46 billion||1.73||$73.10 million||$3.02||24.42|
Watts Water Technologies has higher revenue and earnings than Shengkai Innovations.
Watts Water Technologies beats Shengkai Innovations on 10 of the 12 factors compared between the two stocks.
Shengkai Innovations Company Profile
Shengkai Innovations, Inc., together with its subsidiaries, designs, manufactures, and distributes ceramic valves for industrial use in the People's Republic of China. The company provides ceramic valves in various categories, including gate, ball, back, adjustable, cut-off, and special valves. It also offers various services related to industrial ceramic valves consisting of manufacture, installation, and maintenance of general industrial ceramic valves, as well as the design and manufacture of a range of non-standard ceramic valves. The company sells its products through direct sales personnel and agents to electric power, petrochemical, chemical, aluminum, and metallurgy industries. Shengkai Innovations, Inc. also exports its products to Europe, North America, the Middle East, and the Asia-Pacific region. The company is headquartered in Tianjin, the People's Republic of China.
Watts Water Technologies Company Profile
Watts Water Technologies, Inc. designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. It offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. The company also provides heating, ventilation, and air conditioning and gas products comprising boilers, water heaters, and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, it offers drainage and water re-use products consisting of drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products, such as point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, and do-it-yourself (DIY) chains; and directly to wholesalers and private label accounts. It operates in the Americas, Europe, the Middle East and Africa, and the Asia-Pacific. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.
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