Reviewing Hayward (NYSE:HAYW) and Brother Industries (OTCMKTS:BRTHY)

Hayward (NYSE:HAYW) and Brother Industries (OTCMKTS:BRTHY) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Hayward and Brother Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	0	3	2	0	2.40
Brother Industries	0	1	0	0	2.00

Hayward currently has a consensus price target of $17.50, suggesting a potential upside of 25.20%. Given Hayward’s stronger consensus rating and higher probable upside, equities analysts clearly believe Hayward is more favorable than Brother Industries.

Profitability

This table compares Hayward and Brother Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hayward	13.98%	11.45%	5.77%
Brother Industries	6.19%	7.84%	5.88%

Valuation and Earnings

This table compares Hayward and Brother Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.12 billion	2.70	$151.57 million	$0.73	19.15
Brother Industries	$5.94 billion	0.98	$449.23 million	$2.88	15.80

Brother Industries has higher revenue and earnings than Hayward. Brother Industries is trading at a lower price-to-earnings ratio than Hayward, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Hayward has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Summary

Hayward beats Brother Industries on 8 of the 12 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.