Xylem (XYL) Competitors

Nordson (NASDAQ:NDSN) and Xylem (NYSE:XYL) are both large-cap industrial machinery companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, media sentiment, profitability and earnings.

Do analysts prefer NDSN or XYL?

Nordson presently has a consensus target price of $252.00, suggesting a potential upside of 14.12%. Xylem has a consensus target price of $143.71, suggesting a potential upside of 9.74%. Given Nordson's higher possible upside, research analysts plainly believe Nordson is more favorable than Xylem.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordson	0 Sell rating(s)	5 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.60
Xylem	0 Sell rating(s)	3 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has stronger earnings & valuation, NDSN or XYL?

Xylem has higher revenue and earnings than Nordson. Nordson 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
Nordson	$2.70B	4.61	$467.28M	$7.78	28.38
Xylem	$8.56B	3.72	$890M	$3.72	35.20

Is NDSN or XYL more profitable?

Nordson has a net margin of 16.51% compared to Xylem's net margin of 10.54%. Nordson's return on equity of 19.10% beat Xylem's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Nordson	16.51%	19.10%	9.60%
Xylem	10.54%	10.12%	6.62%

Which has more volatility & risk, NDSN or XYL?

Nordson has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Xylem has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Is NDSN or XYL a better dividend stock?

Nordson pays an annual dividend of $3.12 per share and has a dividend yield of 1.4%. Xylem pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. Nordson pays out 40.1% 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. Nordson has raised its dividend for 62 consecutive years and Xylem has raised its dividend for 2 consecutive years. Nordson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media favor NDSN or XYL?

In the previous week, Xylem had 7 more articles in the media than Nordson. MarketBeat recorded 15 mentions for Xylem and 8 mentions for Nordson. Nordson's average media sentiment score of 1.33 beat Xylem's score of 1.32 indicating that Nordson is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Nordson	6 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Xylem	12 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders believe in NDSN or XYL?

72.1% of Nordson shares are owned by institutional investors. Comparatively, 88.0% of Xylem shares are owned by institutional investors. 0.8% of Nordson shares are owned by insiders. Comparatively, 0.3% of Xylem shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Nordson beats Xylem on 12 of the 20 factors compared between the two stocks.