IDEX (NYSE:IEX – Get Free Report) and Morgan Advanced Materials (OTCMKTS:MCRUF – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Profitability
This table compares IDEX and Morgan Advanced Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IDEX | 14.38% | 15.29% | 8.89% |
| Morgan Advanced Materials | N/A | N/A | N/A |
Earnings & Valuation
This table compares IDEX and Morgan Advanced Materials”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IDEX | $3.46 billion | 4.50 | $483.20 million | $6.76 | 31.08 |
| Morgan Advanced Materials | $1.31 billion | 0.62 | $27.83 million | N/A | N/A |
IDEX has higher revenue and earnings than Morgan Advanced Materials.
Institutional and Insider Ownership
98.0% of IDEX shares are owned by institutional investors. 0.5% of IDEX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for IDEX and Morgan Advanced Materials, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IDEX | 0 | 3 | 6 | 0 | 2.67 |
| Morgan Advanced Materials | 0 | 1 | 0 | 0 | 2.00 |
IDEX presently has a consensus target price of $240.22, indicating a potential upside of 14.35%. Given IDEX’s stronger consensus rating and higher probable upside, research analysts plainly believe IDEX is more favorable than Morgan Advanced Materials.
Volatility and Risk
IDEX has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Morgan Advanced Materials has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
Summary
IDEX beats Morgan Advanced Materials on 12 of the 12 factors compared between the two stocks.
About IDEX
IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics positive displacement pumps, powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, and precision photonic solutions. This segment serves food and beverage, life sciences, analytical instruments, pharmaceutical and biopharmaceutical, industrial, semiconductor, automotive/transportation, medical/dental, energy, cosmetics, marine, chemical, wastewater and water treatment, research and aerospace/defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.
About Morgan Advanced Materials
Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.
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