Financial Analysis: Crane (CR) vs. Watts Water Technologies (WTS)

Crane (NYSE: CR) and Watts Water Technologies (NYSE:WTS) are both mid-cap multi-sector conglomerates companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Dividends

How to Become a New Pot Stock Millionaire

Crane pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. Watts Water Technologies pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Crane pays out 30.9% of its earnings in the form of a dividend. Watts Water Technologies pays out 25.2% 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. Watts Water Technologies has raised its dividend for 5 consecutive years.



Insider & Institutional Ownership

69.2% of Crane shares are held by institutional investors. Comparatively, 77.4% of Watts Water Technologies shares are held by institutional investors. 3.0% of Crane shares are held by insiders. Comparatively, 1.1% of Watts Water Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Crane and Watts Water Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crane $2.79 billion 1.89 $171.80 million $4.53 19.48
Watts Water Technologies $1.46 billion 1.78 $73.10 million $3.02 25.20

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Crane and Watts Water Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crane 0 3 12 0 2.80
Watts Water Technologies 0 6 3 0 2.33

Crane presently has a consensus target price of $107.29, indicating a potential upside of 21.58%. Watts Water Technologies has a consensus target price of $79.50, indicating a potential upside of 4.47%. Given Crane’s stronger consensus rating and higher probable upside, research analysts clearly believe Crane is more favorable than Watts Water Technologies.

Profitability

This table compares Crane and Watts Water Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crane 6.09% 21.43% 8.13%
Watts Water Technologies 5.02% 12.93% 6.02%

Risk & Volatility

Crane has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Watts Water Technologies has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Summary

Crane beats Watts Water Technologies on 13 of the 17 factors compared between the two stocks.

About Crane

Crane Co. manufactures and sells engineered industrial products worldwide. The company's Fluid Handling segment offers process valves and related products, including on/off valves and related products for application in the chemical, oil and gas, power, and general industrial end markets; valves and related products for the non-residential construction, general industrial, and municipal markets; and pumps and related products for water and wastewater applications in the industrial, municipal, commercial, and military markets. This segment offers its products under the Crane, Saunders, Jenkins, Pacific, Xomox, Krombach, DEPA, ELRO, REVO, Flowseal, Centerline, Resistoflex, Duochek, Barksdale, Westlock, WTA, Stockham, Wask, Viking Johnson, IAT, Hattersley, NABIC, Sperryn, Wade, Rhodes, Brownall, Deming, Weinman, Burks, and Barnes names. Its Payment & Merchandising Technologies segment provides coin acceptors and dispensers, coin hoppers and recyclers, bill validators and recyclers, and cashless systems; vending equipment that dispenses food, snack, and hot and cold beverages; and vending management software, and cashless payment and wireless connectivity products, as well as engineered banknotes. This segment serves retail self-checkout, vending, casino gaming, government lotteries, parking, transit fare collection, payment kiosks, and banking markets, as well as food and beverage companies. The company's Aerospace & Electronics segment provides original equipment and aftermarket parts under the Hydro-Aire, ELDEC, Lear Romec, P.L. Porter, Keltec, Interpoint, Signal Technology, Merrimac Industries, and Polyflon names to commercial and military aerospace, and defense markets. Its Engineered Materials segment offers fiberglass-reinforced plastic panels and coils for use in the manufacturing of recreational vehicles, and truck bodies and trailers, as well as commercial and industrial buildings. The company was founded in 1855 and is based in Stamford, Connecticut.

About Watts Water Technologies

Watts Water Technologies, Inc. designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. It offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. The company also provides heating, ventilation, and air conditioning and gas products comprising boilers, water heaters, and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, it offers drainage and water re-use products consisting of drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products, such as point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, and do-it-yourself (DIY) chains; and directly to wholesalers and private label accounts. It operates in the Americas, Europe, the Middle East and Africa, and the Asia-Pacific. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

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

Leave a Reply