Financial Review: iRobot (IRBT) versus EnPro Industries (NYSE:NPO)

iRobot (NASDAQ: IRBT) and EnPro Industries (NYSE:NPO) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Institutional & Insider Ownership

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89.4% of iRobot shares are held by institutional investors. Comparatively, 92.8% of EnPro Industries shares are held by institutional investors. 4.5% of iRobot shares are held by company insiders. Comparatively, 2.6% of EnPro Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

iRobot has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, EnPro Industries has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Dividends

EnPro Industries pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. iRobot does not pay a dividend. EnPro Industries pays out 41.7% of its earnings in the form of a dividend. EnPro Industries has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for iRobot and EnPro Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iRobot 1 6 3 0 2.20
EnPro Industries 0 0 4 0 3.00

iRobot presently has a consensus target price of $67.25, suggesting a potential upside of 1.43%. EnPro Industries has a consensus target price of $101.25, suggesting a potential upside of 31.24%. Given EnPro Industries’ stronger consensus rating and higher possible upside, analysts clearly believe EnPro Industries is more favorable than iRobot.

Earnings & Valuation

This table compares iRobot and EnPro Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iRobot $883.91 million 2.11 $50.96 million $1.77 37.46
EnPro Industries $1.31 billion 1.27 $539.80 million $2.30 33.54

EnPro Industries has higher revenue and earnings than iRobot. EnPro Industries is trading at a lower price-to-earnings ratio than iRobot, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares iRobot and EnPro Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iRobot 5.77% 12.62% 9.41%
EnPro Industries 40.39% 8.02% 2.93%

Summary

EnPro Industries beats iRobot on 10 of the 17 factors compared between the two stocks.

About iRobot

iRobot Corporation designs, builds, and sells robots for the consumer market worldwide. It offers Roomba floor vacuuming robots; Braava family of automatic floor mopping robots; and Mirra Pool Cleaning Robot to clean residential pools and removes debris as small as two microns from pool floors, walls, and stair. The company sells its robots through various distribution channels, including chain stores and other national retailers, its online store, and value-added distributors and resellers. iRobot Corporation was founded in 1990 and is headquartered in Bedford, Massachusetts.

About EnPro Industries

EnPro Industries, Inc. is engaged in the designing, developing, manufacturing and marketing engineered industrial products. It operates through three segments. The Sealing Products segment includes three operating divisions: Garlock, which designs, manufactures and sells sealing products; Technetics, which designs, manufactures and sells metal seals and elastomeric seals, among others, and Stemco LP (Stemco), which designs, manufactures and sells heavy-duty truck wheel-end components and systems. The Engineered Products segment includes two industrial products businesses: GGB, which designs, manufactures and sells self-lubricating, non-rolling, metal polymer and engineered plastics, among others, and Compressor Products International, which designs, manufactures, sells and services components. The Power Systems segment includes Fairbanks Morse business, which designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines.

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