DCI vs. XYL, DOV, IEX, SNA, SWK, PNR, GGG, NDSN, LECO, and ITT
Should you be buying Donaldson stock or one of its competitors? The main competitors of Donaldson include Xylem (XYL), Dover (DOV), IDEX (IEX), Snap-on (SNA), Stanley Black & Decker (SWK), Pentair (PNR), Graco (GGG), Nordson (NDSN), Lincoln Electric (LECO), and ITT (ITT). These companies are all part of the "industrial machinery" industry.
Donaldson (NYSE:DCI) and Xylem (NYSE:XYL) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation, risk, community ranking and media sentiment.
Xylem received 49 more outperform votes than Donaldson when rated by MarketBeat users. However, 64.65% of users gave Donaldson an outperform vote while only 63.06% of users gave Xylem an outperform vote.
Donaldson presently has a consensus price target of $67.67, indicating a potential downside of 8.92%. Xylem has a consensus price target of $144.58, indicating a potential upside of 2.66%. Given Xylem's stronger consensus rating and higher probable upside, analysts plainly believe Xylem is more favorable than Donaldson.
In the previous week, Xylem had 6 more articles in the media than Donaldson. MarketBeat recorded 12 mentions for Xylem and 6 mentions for Donaldson. Donaldson's average media sentiment score of 1.00 beat Xylem's score of 0.72 indicating that Donaldson is being referred to more favorably in the media.
82.8% of Donaldson shares are held by institutional investors. Comparatively, 88.0% of Xylem shares are held by institutional investors. 2.6% of Donaldson shares are held by company insiders. Comparatively, 0.3% of Xylem shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Donaldson has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Xylem has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
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.
Donaldson has a net margin of 11.22% compared to Xylem's net margin of 8.34%. Donaldson's return on equity of 29.00% beat Xylem's return on equity.
Donaldson pays an annual dividend of $1.08 per share and has a dividend yield of 1.5%. Xylem pays an annual dividend of $1.44 per share and has a dividend yield of 1.0%. Donaldson pays out 33.4% of its earnings in the form of a dividend. Xylem pays out 51.2% 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. Donaldson is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Donaldson and Xylem tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DCI 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 NYSE 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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