Xylem (XYL) Competitors

Xylem (NYSE:XYL) and Parker-Hannifin (NYSE:PH) are both large-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, media sentiment, community ranking, risk, institutional ownership, earnings, dividends and analyst recommendations.

Does the MarketBeat Community prefer XYL or PH?

Parker-Hannifin received 203 more outperform votes than Xylem when rated by MarketBeat users. Likewise, 63.79% of users gave Parker-Hannifin 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%
Parker-Hannifin	Outperform Votes 738 63.79%	Underperform Votes 419 36.21%

Which has stronger earnings and valuation, XYL or PH?

Parker-Hannifin has higher revenue and earnings than Xylem. Parker-Hannifin 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	3.55	$890M	$3.72	33.76
Parker-Hannifin	$19.79B	4.30	$2.84B	$25.97	25.65

Which has more volatility and risk, XYL or PH?

Xylem has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Do insiders & institutionals believe in XYL or PH?

88.0% of Xylem shares are owned by institutional investors. Comparatively, 82.4% of Parker-Hannifin shares are owned by institutional investors. 0.3% of Xylem shares are owned by company insiders. Comparatively, 0.4% of Parker-Hannifin shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Is XYL or PH more profitable?

Parker-Hannifin has a net margin of 15.87% compared to Xylem's net margin of 10.40%. Parker-Hannifin's return on equity of 27.34% beat Xylem's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Xylem	10.40%	9.96%	6.48%
Parker-Hannifin	15.87%	27.34%	11.64%

Do analysts recommend XYL or PH?

Xylem presently has a consensus target price of $146.88, indicating a potential upside of 16.95%. Parker-Hannifin has a consensus target price of $718.44, indicating a potential upside of 7.83%. Given Xylem's higher possible upside, analysts clearly believe Xylem is more favorable than Parker-Hannifin.

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
Parker-Hannifin	0 Sell rating(s)	3 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	2.81

Does the media favor XYL or PH?

In the previous week, Parker-Hannifin had 14 more articles in the media than Xylem. MarketBeat recorded 35 mentions for Parker-Hannifin and 21 mentions for Xylem. Xylem's average media sentiment score of 1.47 beat Parker-Hannifin's score of 1.42 indicating that Xylem is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Xylem	17 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Parker-Hannifin	31 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is XYL or PH a better dividend stock?

Xylem pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Parker-Hannifin pays an annual dividend of $7.20 per share and has a dividend yield of 1.1%. Xylem pays out 43.0% of its earnings in the form of a dividend. Parker-Hannifin pays out 27.7% 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 Parker-Hannifin has increased its dividend for 70 consecutive years.

Summary

Parker-Hannifin beats Xylem on 16 of the 21 factors compared between the two stocks.