Analyzing Crane (CR) and SPX Corporation (SPXC)

SPX Corporation (NYSE: SPXC) and Crane (NYSE:CR) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitabiliy, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for SPX Corporation and Crane, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX Corporation 0 0 0 0 N/A
Crane 0 6 5 0 2.45

Crane has a consensus target price of $74.57, suggesting a potential downside of 1.79%. Given Crane’s higher probable upside, analysts clearly believe Crane is more favorable than SPX Corporation.

Volatility & Risk

SPX Corporation has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Crane has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Dividends

Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.7%. SPX Corporation does not pay a dividend. Crane pays out 60.8% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares SPX Corporation and Crane’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SPX Corporation $1.45 billion 0.77 $101.70 million ($1.83) -14.35
Crane $2.75 billion 1.64 $476.60 million $2.17 34.99

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

Institutional & Insider Ownership

84.0% of SPX Corporation shares are held by institutional investors. Comparatively, 69.4% of Crane shares are held by institutional investors. 0.6% of SPX Corporation shares are held by insiders. Comparatively, 3.1% of Crane shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares SPX Corporation and Crane’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPX Corporation -5.15% 32.10% 3.67%
Crane 4.79% 20.57% 7.49%

Summary

Crane beats SPX Corporation on 10 of the 14 factors compared between the two stocks.

About SPX Corporation

SPX Corporation is a global supplier of infrastructure equipment. The Company operates through three segments: HVAC; Detection and Measurement, and Engineered Solutions. The HVAC solutions offered by its businesses include package cooling towers, residential and commercial boilers, heating and ventilation products. Its detection and measurement product lines encompass underground pipe and cable locators, and inspection equipment. Within its power platform, it is a manufacturer of medium and large power transformers, as well as equipment for various types of power plant, including cooling equipment, heat exchangers and pollution control systems. As of December 31, 2016, the Company had operations in approximately 15 countries.

About Crane

Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.

Receive News & Ratings for SPX Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SPX Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply