LECO vs. AOS, AMCR, PNR, GGG, SWK, RRX, CNHI, ALLE, TTEK, and NDSN
Should you be buying Lincoln Electric stock or one of its competitors? The main competitors of Lincoln Electric include A. O. Smith (AOS), Amcor (AMCR), Pentair (PNR), Graco (GGG), Stanley Black & Decker (SWK), Regal Rexnord (RRX), CNH Industrial (CNHI), Allegion (ALLE), Tetra Tech (TTEK), and Nordson (NDSN). These companies are all part of the "industrial products" sector.
A. O. Smith (NYSE:AOS) and Lincoln Electric (NASDAQ:LECO) are both large-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, community ranking, analyst recommendations, dividends, profitability, media sentiment, risk, earnings and valuation.
A. O. Smith currently has a consensus price target of $90.67, suggesting a potential upside of 7.54%. Lincoln Electric has a consensus price target of $228.00, suggesting a potential upside of 2.27%. Given Lincoln Electric's higher possible upside, equities research analysts plainly believe A. O. Smith is more favorable than Lincoln Electric.
76.1% of A. O. Smith shares are held by institutional investors. Comparatively, 79.6% of Lincoln Electric shares are held by institutional investors. 2.7% of A. O. Smith shares are held by insiders. Comparatively, 2.6% of Lincoln Electric shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
A. O. Smith has a net margin of 14.94% compared to A. O. Smith's net margin of 13.23%. A. O. Smith's return on equity of 43.81% beat Lincoln Electric's return on equity.
A. O. Smith has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Lincoln Electric has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
A. O. Smith pays an annual dividend of $1.28 per share and has a dividend yield of 1.5%. Lincoln Electric pays an annual dividend of $2.84 per share and has a dividend yield of 1.3%. A. O. Smith pays out 33.2% of its earnings in the form of a dividend. Lincoln Electric pays out 30.1% 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. A. O. Smith has increased its dividend for 30 consecutive years and Lincoln Electric has increased its dividend for 29 consecutive years. A. O. Smith is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
A. O. Smith has higher earnings, but lower revenue than Lincoln Electric. A. O. Smith is trading at a lower price-to-earnings ratio than Lincoln Electric, indicating that it is currently the more affordable of the two stocks.
In the previous week, A. O. Smith had 3 more articles in the media than Lincoln Electric. MarketBeat recorded 19 mentions for A. O. Smith and 16 mentions for Lincoln Electric. Lincoln Electric's average media sentiment score of 0.97 beat A. O. Smith's score of 0.68 indicating that A. O. Smith is being referred to more favorably in the media.
A. O. Smith received 21 more outperform votes than Lincoln Electric when rated by MarketBeat users. Likewise, 62.28% of users gave A. O. Smith an outperform vote while only 59.51% of users gave Lincoln Electric an outperform vote.
Summary
A. O. Smith beats Lincoln Electric on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LECO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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