Critical Review: Mueller Water Products (MWA) & Gardner Denver (GDI)

Mueller Water Products (NYSE: MWA) and Gardner Denver (NYSE:GDI) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Mueller Water Products and Gardner Denver, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mueller Water Products 1 2 5 0 2.50
Gardner Denver 0 3 9 0 2.75

Mueller Water Products currently has a consensus price target of $13.88, indicating a potential upside of 24.11%. Gardner Denver has a consensus price target of $31.50, indicating a potential downside of 0.72%. Given Mueller Water Products’ higher probable upside, equities research analysts plainly believe Mueller Water Products is more favorable than Gardner Denver.

Profitability

This table compares Mueller Water Products and Gardner Denver’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mueller Water Products 20.51% 15.25% 5.99%
Gardner Denver N/A N/A N/A

Dividends

Mueller Water Products pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Gardner Denver does not pay a dividend. Mueller Water Products pays out 18.9% of its earnings in the form of a dividend. Mueller Water Products has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Mueller Water Products and Gardner Denver’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mueller Water Products $826.00 million 2.15 $123.30 million $1.06 10.55
Gardner Denver $2.38 billion 2.62 $18.40 million ($0.04) -793.25

Mueller Water Products has higher earnings, but lower revenue than Gardner Denver. Gardner Denver is trading at a lower price-to-earnings ratio than Mueller Water Products, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

83.2% of Mueller Water Products shares are owned by institutional investors. 3.0% of Mueller Water Products shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Mueller Water Products beats Gardner Denver on 11 of the 16 factors compared between the two stocks.

About Mueller Water Products

Mueller Water Products, Inc. is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. The Company operates through three segments: Mueller Co., Anvil and Mueller Technologies. The Mueller Co. segment manufactures valves for water and gas systems, and dry-barrel and wet-barrel fire hydrants. The Anvil segment manufactures and sources a range of products, including a range of fittings, couplings, hangers and related products. The Mueller Technologies segment offers metering systems, leak detection, pipe condition assessment and other products and services for the water infrastructure industry. The Mueller Technologies segment includes Mueller Systems and Echologics businesses. The Company offers a range of water infrastructure, flow control and piping component system products and services in the United States and Canada.

About Gardner Denver

Gardner Denver Holdings, Inc. is a global provider of mission-critical flow control and compression equipments and associated aftermarket parts, consumables and services. The Company operates through three business segments: Industry, Energy and Medical. Industry segment designs, manufactures, markets and services a range of air compression, vacuum and blower products. Energy segment supplies positive displacement pumps, liquid ring vacuum pumps, compressors and integrated systems, engineered fluid loading and transfer equipment and associated aftermarket parts. Medical segment designs, manufactures and supplies medical equipment, laboratory vacuum and automated liquid handling end-markets The Company’s products are sold under a range of brands namely Gardner Denver, CompAir, Nash, Emco Wheaton, Robuschi, Elmo Rietschle and Thomas.

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