Ingersoll-Rand (NYSE: IR) and Suez Environnement (OTCMKTS:SZEVY) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Risk & Volatility
Ingersoll-Rand has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Suez Environnement has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Earnings & Valuation
This table compares Ingersoll-Rand and Suez Environnement’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ingersoll-Rand||$14.20 billion||1.50||$1.30 billion||$4.51||18.84|
|Suez Environnement||$17.94 billion||0.50||$341.12 million||$0.40||18.30|
Ingersoll-Rand has higher earnings, but lower revenue than Suez Environnement. Suez Environnement is trading at a lower price-to-earnings ratio than Ingersoll-Rand, indicating that it is currently the more affordable of the two stocks.
Ingersoll-Rand pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Suez Environnement pays an annual dividend of $0.26 per share and has a dividend yield of 3.6%. Ingersoll-Rand pays out 39.9% of its earnings in the form of a dividend. Suez Environnement pays out 65.0% 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. Ingersoll-Rand has increased its dividend for 7 consecutive years.
This table compares Ingersoll-Rand and Suez Environnement’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Ingersoll-Rand and Suez Environnement, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ingersoll-Rand presently has a consensus target price of $103.33, indicating a potential upside of 21.58%. Given Ingersoll-Rand’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ingersoll-Rand is more favorable than Suez Environnement.
Insider and Institutional Ownership
80.7% of Ingersoll-Rand shares are owned by institutional investors. Comparatively, 0.1% of Suez Environnement shares are owned by institutional investors. 0.6% of Ingersoll-Rand 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.
Ingersoll-Rand beats Suez Environnement on 15 of the 17 factors compared between the two stocks.
Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.
About Suez Environnement
SUEZ SA, together with its subsidiaries, engages in the water and waste cycle management business. The company operates through five segments: Water Europe, Recycling and Recovery Europe, International, Water Technologies & Solutions, and Other. It provides water distribution and treatment services to individuals, local authorities, and industrial clients; waste collection and treatment services, including collection, sorting, recycling, composting, energy recovery, and landfilling for non-hazardous and hazardous waste for local authorities and industrial clients. The company also offers consulting services; and engineering and construction contracts and other services. SUEZ SA was founded in 1858 and is headquartered in Paris, France.
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