Donaldson (DCI) Competitors

Xylem (NYSE:XYL) and Donaldson (NYSE:DCI) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk, analyst recommendations, community ranking and media sentiment.

Is XYL or DCI a better dividend stock?

Xylem pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Donaldson pays an annual dividend of $1.08 per share and has a dividend yield of 1.6%. Xylem pays out 43.0% of its earnings in the form of a dividend. Donaldson pays out 31.6% 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. Xylem has increased its dividend for 2 consecutive years and Donaldson has increased its dividend for 38 consecutive years. Donaldson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community believe in XYL or DCI?

Xylem received 53 more outperform votes than Donaldson when rated by MarketBeat users. However, 64.96% of users gave Donaldson an outperform vote while only 63.39% of users gave Xylem an outperform vote.

Company	Underperform	Outperform
Xylem	Outperform Votes 535 63.39%	Underperform Votes 309 36.61%
Donaldson	Outperform Votes 482 64.96%	Underperform Votes 260 35.04%

Do analysts rate XYL or DCI?

Xylem currently has a consensus target price of $146.88, indicating a potential upside of 15.95%. Donaldson has a consensus target price of $71.33, indicating a potential upside of 3.23%. Given Xylem's stronger consensus rating and higher probable upside, research analysts clearly believe Xylem is more favorable than Donaldson.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylem	0 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.70
Donaldson	1 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is XYL or DCI more profitable?

Donaldson has a net margin of 11.56% compared to Xylem's net margin of 10.40%. Donaldson's return on equity of 29.07% beat Xylem's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Xylem	10.40%	9.96%	6.48%
Donaldson	11.56%	29.07%	14.76%

Which has better valuation & earnings, XYL or DCI?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylem	$8.60B	3.59	$890M	$3.72	34.05
Donaldson	$3.63B	2.27	$414M	$3.42	20.21

Does the media refer more to XYL or DCI?

In the previous week, Xylem had 14 more articles in the media than Donaldson. MarketBeat recorded 32 mentions for Xylem and 18 mentions for Donaldson. Donaldson's average media sentiment score of 1.42 beat Xylem's score of 1.35 indicating that Donaldson is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Xylem	24 Very Positive mention(s)	0 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Donaldson	17 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, XYL or DCI?

Xylem has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Donaldson has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Do insiders and institutionals have more ownership in XYL or DCI?

88.0% of Xylem shares are held by institutional investors. Comparatively, 82.8% of Donaldson shares are held by institutional investors. 0.3% of Xylem shares are held by company insiders. Comparatively, 2.7% of Donaldson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Xylem beats Donaldson on 12 of the 21 factors compared between the two stocks.