General Electric (NYSE: GE) and Crane (NYSE:CR) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Earnings & Valuation
This table compares General Electric and Crane’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Electric||$122.09 billion||0.95||-$5.79 billion||($0.72)||-18.54|
|Crane||$2.79 billion||1.99||$171.80 million||$2.84||32.67|
This table compares General Electric and Crane’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
56.3% of General Electric shares are owned by institutional investors. Comparatively, 69.4% of Crane shares are owned by institutional investors. 1.1% of General Electric shares are owned by insiders. Comparatively, 3.1% of Crane 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.
General Electric pays an annual dividend of $0.48 per share and has a dividend yield of 3.6%. Crane pays an annual dividend of $1.40 per share and has a dividend yield of 1.5%. General Electric pays out -66.7% of its earnings in the form of a dividend. Crane pays out 49.3% 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. General Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
General Electric has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Crane has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
This is a summary of current ratings and price targets for General Electric and Crane, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Electric presently has a consensus target price of $18.17, suggesting a potential upside of 36.08%. Crane has a consensus target price of $108.50, suggesting a potential upside of 16.96%. Given General Electric’s higher possible upside, equities analysts plainly believe General Electric is more favorable than Crane.
Crane beats General Electric on 12 of the 16 factors compared between the two stocks.
About General Electric
General Electric Company is a global digital industrial company. The Company’s products and services range from aircraft engines, power generation, and oil and gas production equipment to medical imaging, financing and industrial products. Its segments include Power, which includes products and services related to energy production; Renewable Energy, which offers renewable power sources; Oil & Gas, including liquefied natural gas and pipelines; Aviation, which includes commercial and military aircraft engines, and integrated digital components, among others; Healthcare, which provides healthcare technologies in medical imaging, digital solutions, patient monitoring and diagnostics, and drug discovery, among others; Transportation, which is a supplier to the railroad, mining, marine, stationary power and drilling industries; Energy Connections & Lighting, which includes Energy Connections and Lighting businesses, and Capital, which is a financial services division.
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.
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