AMTEK (NYSE: AME) and Spectrum Brands (NYSE:SPB) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares AMTEK and Spectrum Brands’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AMTEK||$3.84 billion||4.49||$512.15 million||$2.38||31.33|
|Spectrum Brands||$5.01 billion||1.39||$295.80 million||$5.02||24.03|
This is a breakdown of recent recommendations and price targets for AMTEK and Spectrum Brands, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMTEK currently has a consensus target price of $73.11, suggesting a potential downside of 1.96%. Spectrum Brands has a consensus target price of $141.67, suggesting a potential upside of 17.45%. Given Spectrum Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Spectrum Brands is more favorable than AMTEK.
AMTEK pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. Spectrum Brands pays an annual dividend of $1.68 per share and has a dividend yield of 1.4%. AMTEK pays out 15.1% of its earnings in the form of a dividend. Spectrum Brands pays out 33.5% 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. Spectrum Brands has raised its dividend for 4 consecutive years. Spectrum Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
AMTEK has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
This table compares AMTEK and Spectrum Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
84.8% of AMTEK shares are owned by institutional investors. Comparatively, 48.2% of Spectrum Brands shares are owned by institutional investors. 2.1% of AMTEK shares are owned by company insiders. Comparatively, 1.0% of Spectrum Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
AMTEK beats Spectrum Brands on 9 of the 17 factors compared between the two stocks.
AMTEK Company Profile
AMETEK, Inc. is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company operates through two segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG designs and manufactures instruments for the process, power and industrial and aerospace markets. EIG provides process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor and automation markets. It makes monitoring and metering devices, industrial battery chargers and uninterruptible power supplies, programmable power equipment, electrical test equipment and gas turbine sensors. EMG is a differentiated supplier of precision motion control solutions, thermal management systems, specialty metals and electrical interconnects. Its end markets include medical, automation, petrochemical and other industrial markets. It operates a network of aviation maintenance, repair and overhaul (MRO) facilities.
Spectrum Brands Company Profile
Spectrum Brands Holdings, Inc. (SB Holdings) is a diversified global consumer products company. The Company manufactures, markets and/or distributes its products in approximately 160 countries in the North America (NA); Europe, the Middle East and Africa (EMEA); Latin America (LATAM), and Asia-Pacific (APAC) regions. It has five segments: Global Batteries & Appliances (GBA), Global Pet Supplies (PET), Home and Garden (H&G), Hardware & Home Improvement (HHI) and Global Auto Care (GAC). The Company’s GBA segment includes product categories, such as consumer batteries, small appliances and personal care. The Company’s HHI segment includes product categories, such as lockset, plumbing and hardware. The Company’s PET segment’s product categories include aquatics, companion animal and pet food. The Company’s H&G segment’s product categories include controls, household and repellents. The Company’s GAC segment’s product categories include appearance, performance and A/C recharge.
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