Xylem (XYL) Competitors

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

Do analysts prefer DCI or XYL?

Donaldson currently has a consensus target price of $70.00, suggesting a potential downside of 1.30%. Xylem has a consensus target price of $143.71, suggesting a potential upside of 9.16%. Given Xylem's stronger consensus rating and higher probable upside, analysts plainly believe Xylem is more favorable than Donaldson.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donaldson	1 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00
Xylem	0 Sell rating(s)	3 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.67

Is DCI or XYL a better dividend stock?

Donaldson pays an annual dividend of $1.20 per share and has a dividend yield of 1.7%. Xylem pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Donaldson pays out 40.3% of its earnings in the form of a dividend. Xylem pays out 43.0% 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 has raised its dividend for 38 consecutive years and Xylem has raised its dividend for 2 consecutive years. Donaldson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media refer more to DCI or XYL?

In the previous week, Xylem had 7 more articles in the media than Donaldson. MarketBeat recorded 16 mentions for Xylem and 9 mentions for Donaldson. Xylem's average media sentiment score of 1.41 beat Donaldson's score of 0.76 indicating that Xylem is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Donaldson	5 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Xylem	14 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

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

82.8% of Donaldson shares are owned by institutional investors. Comparatively, 88.0% of Xylem shares are owned by institutional investors. 2.7% of Donaldson shares are owned by insiders. Comparatively, 0.3% of Xylem shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Which has preferable earnings & valuation, DCI or XYL?

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
Donaldson	$3.59B	2.30	$414M	$2.98	23.80
Xylem	$8.56B	3.74	$890M	$3.72	35.39

Is DCI or XYL more profitable?

Xylem has a net margin of 10.54% compared to Donaldson's net margin of 9.94%. Donaldson's return on equity of 28.86% beat Xylem's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Donaldson	9.94%	28.86%	14.63%
Xylem	10.54%	10.12%	6.62%

Which has more volatility and risk, DCI or XYL?

Donaldson has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Xylem has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

Xylem beats Donaldson on 13 of the 19 factors compared between the two stocks.