XYL vs. ITW, PH, IR, DOV, IEX, SNA, SWK, PNR, GGG, and NDSN
Should you be buying Xylem stock or one of its competitors? The main competitors of Xylem include Illinois Tool Works (ITW), Parker-Hannifin (PH), Ingersoll Rand (IR), Dover (DOV), IDEX (IEX), Snap-on (SNA), Stanley Black & Decker (SWK), Pentair (PNR), Graco (GGG), and Nordson (NDSN). These companies are all part of the "industrial machinery" industry.
Illinois Tool Works (NYSE:ITW) and Xylem (NYSE:XYL) are both large-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, media sentiment, risk, valuation, profitability, community ranking, analyst recommendations and institutional ownership.
Illinois Tool Works received 85 more outperform votes than Xylem when rated by MarketBeat users. However, 63.06% of users gave Xylem an outperform vote while only 57.20% of users gave Illinois Tool Works an outperform vote.
In the previous week, Illinois Tool Works had 14 more articles in the media than Xylem. MarketBeat recorded 26 mentions for Illinois Tool Works and 12 mentions for Xylem. Illinois Tool Works' average media sentiment score of 0.72 beat Xylem's score of 0.38 indicating that Xylem is being referred to more favorably in the news media.
Illinois Tool Works has higher revenue and earnings than Xylem. Illinois Tool Works is trading at a lower price-to-earnings ratio than Xylem, indicating that it is currently the more affordable of the two stocks.
Illinois Tool Works pays an annual dividend of $5.60 per share and has a dividend yield of 2.3%. Xylem pays an annual dividend of $1.44 per share and has a dividend yield of 1.0%. Illinois Tool Works pays out 55.2% 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. Illinois Tool Works has raised its dividend for 54 consecutive years and Xylem has raised its dividend for 12 consecutive years. Illinois Tool Works is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Illinois Tool Works currently has a consensus target price of $253.30, indicating a potential upside of 2.35%. Xylem has a consensus target price of $144.58, indicating a potential upside of 2.66%. Given Illinois Tool Works' stronger consensus rating and higher possible upside, analysts clearly believe Xylem is more favorable than Illinois Tool Works.
79.8% of Illinois Tool Works shares are held by institutional investors. Comparatively, 88.0% of Xylem shares are held by institutional investors. 0.9% of Illinois Tool Works shares are held by insiders. Comparatively, 0.3% of Xylem shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Illinois Tool Works has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Xylem has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Illinois Tool Works has a net margin of 19.07% compared to Illinois Tool Works' net margin of 8.34%. Xylem's return on equity of 97.82% beat Illinois Tool Works' return on equity.
Summary
Illinois Tool Works beats Xylem on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding XYL and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This 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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