Dover (DOV) and Apergy (APY) Critical Analysis

Dover (NYSE: DOV) and Apergy (NYSE:APY) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Dover and Apergy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover 0 7 4 0 2.36
Apergy 0 1 3 0 2.75

Dover presently has a consensus price target of $102.80, suggesting a potential upside of 40.98%. Apergy has a consensus price target of $45.00, suggesting a potential upside of 9.14%. Given Dover’s higher possible upside, equities analysts plainly believe Dover is more favorable than Apergy.

Dividends

Dover pays an annual dividend of $1.88 per share and has a dividend yield of 2.6%. Apergy does not pay a dividend. Dover pays out 46.7% of its earnings in the form of a dividend. Dover has increased its dividend for 62 consecutive years.

Earnings and Valuation

This table compares Dover and Apergy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dover $7.83 billion 1.44 $811.66 million $4.03 18.09
Apergy N/A N/A N/A N/A N/A

Dover has higher revenue and earnings than Apergy.

Profitability

This table compares Dover and Apergy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover 9.71% 16.48% 6.74%
Apergy N/A N/A N/A

Institutional & Insider Ownership

85.6% of Dover shares are held by institutional investors. 2.6% of Dover 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.

Summary

Dover beats Apergy on 10 of the 12 factors compared between the two stocks.

About Dover

Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. The company operates in four segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Energy segment provides solutions and services for the production and processing of fuels for drilling and production, bearings and compression, and automation end markets. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets. The Fluids segment focuses on the safe handling of critical fluids across the retail fueling, chemical, hygienic, oil and gas, and industrial markets. This segment also manufactures connectors for use in various bio-processing applications; and pumps and compressors that are used to transfer liquid and bulk products in various markets, including refined fuels, liquefied petroleum gas, food/sanitary, transportation, and chemical process industries. The Refrigeration & Food Equipment segment manufactures refrigeration systems, refrigeration display cases, specialty glass, commercial glass refrigerator and freezer doors, and brazed heat exchangers; and electrical distribution products and engineering services, commercial food service equipment, cook-chill production systems, custom food storage and preparation products, kitchen ventilation systems, conveyer systems, and beverage can-making machinery. The company was founded in 1947 and is headquartered in Downers Grove, Illinois.

About Apergy

Apergy Corporation provides various engineered technologies to drill for and produce oil and gas worldwide. Its products include artificial lift equipment and solutions, such as rod pumping systems, electric submersible pump systems, progressive cavity pumps and drive systems, and plunger lifts, as well as polycrystalline diamond cutters for drilling. The company also offers equipment, software, and IIoT solutions for downhole monitoring, wellsite productivity enhancement, and asset integrity management. Apergy Corporation is headquartered in The Woodlands, Texas. Apergy Corporation operates independently of Dover Corporation as of May 9, 2018.

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