Ingersoll Rand (NYSE:IR) and Colfax (NYSE:CFX) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Risk & Volatility
Ingersoll Rand has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Colfax has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.
Profitability
This table compares Ingersoll Rand and Colfax's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ingersoll Rand | -3.97% | -2.27% | -1.25% |
Colfax | -0.24% | 6.04% | 2.84% |
Earnings & Valuation
This table compares Ingersoll Rand and Colfax's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ingersoll Rand | $2.45 billion | 8.46 | $159.10 million | $0.76 | 65.20 |
Colfax | $3.33 billion | 1.80 | $-527,650,000.00 | $2.33 | 18.97 |
Ingersoll Rand has higher earnings, but lower revenue than Colfax. Colfax is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Ingersoll Rand and Colfax, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ingersoll Rand | 0 | 5 | 8 | 0 | 2.62 |
Colfax | 2 | 3 | 8 | 0 | 2.46 |
Ingersoll Rand currently has a consensus price target of $47.3846, indicating a potential downside of 4.52%. Colfax has a consensus price target of $40.4231, indicating a potential downside of 8.30%. Given Ingersoll Rand's stronger consensus rating and higher probable upside, research analysts clearly believe Ingersoll Rand is more favorable than Colfax.
Institutional & Insider Ownership
95.9% of Ingersoll Rand shares are held by institutional investors. Comparatively, 99.6% of Colfax shares are held by institutional investors. 0.7% of Ingersoll Rand shares are held by company insiders. Comparatively, 12.0% of Colfax shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Colfax beats Ingersoll Rand on 8 of the 13 factors compared between the two stocks.