Spirax-Sarco Engineering (LON:SPX) and Rotork (LON:ROR) are both mid-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Earnings & Valuation
This table compares Spirax-Sarco Engineering and Rotork's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Spirax-Sarco Engineering | £1.22 billion | 6.47 | N/A | GBX 227.20 | 47.14 |
Rotork | £633.94 million | 4.92 | N/A | GBX 10.60 | 33.66 |
Rotork is trading at a lower price-to-earnings ratio than Spirax-Sarco Engineering, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Spirax-Sarco Engineering and Rotork, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Spirax-Sarco Engineering | 4 | 8 | 0 | 0 | 1.67 |
Rotork | 3 | 9 | 4 | 0 | 2.06 |
Spirax-Sarco Engineering currently has a consensus target price of GBX 8,910.45, indicating a potential downside of 16.80%. Rotork has a consensus target price of GBX 272.86, indicating a potential downside of 23.53%. Given Spirax-Sarco Engineering's higher probable upside, equities research analysts plainly believe Spirax-Sarco Engineering is more favorable than Rotork.
Profitability
This table compares Spirax-Sarco Engineering and Rotork's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Spirax-Sarco Engineering | N/A | N/A | N/A |
Rotork | N/A | N/A | N/A |
Dividends
Spirax-Sarco Engineering pays an annual dividend of GBX 1.10 per share and has a dividend yield of 0.0%. Rotork pays an annual dividend of GBX 0.02 per share and has a dividend yield of 0.0%. Spirax-Sarco Engineering pays out 0.5% of its earnings in the form of a dividend. Rotork pays out 0.2% 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.
Summary
Spirax-Sarco Engineering beats Rotork on 6 of the 9 factors compared between the two stocks.