Ingersoll-Rand PLC (Ireland) (NYSE: IR) and Woodward (NASDAQ:WWD) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
This table compares Ingersoll-Rand PLC (Ireland) and Woodward’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ingersoll-Rand PLC (Ireland)||7.60%||16.64%||6.40%|
Institutional and Insider Ownership
80.6% of Ingersoll-Rand PLC (Ireland) shares are owned by institutional investors. Comparatively, 71.3% of Woodward shares are owned by institutional investors. 0.7% of Ingersoll-Rand PLC (Ireland) shares are owned by insiders. Comparatively, 5.9% of Woodward shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Ingersoll-Rand PLC (Ireland) pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Ingersoll-Rand PLC (Ireland) pays out 44.8% of its earnings in the form of a dividend. Woodward pays out 15.8% 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. Woodward has raised its dividend for 6 consecutive years.
Earnings and Valuation
This table compares Ingersoll-Rand PLC (Ireland) and Woodward’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ingersoll-Rand PLC (Ireland)||$13.84 billion||1.62||$1.98 billion||$4.02||22.02|
|Woodward||$2.08 billion||2.09||$342.57 million||$3.17||22.41|
Ingersoll-Rand PLC (Ireland) has higher revenue and earnings than Woodward. Ingersoll-Rand PLC (Ireland) is trading at a lower price-to-earnings ratio than Woodward, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Ingersoll-Rand PLC (Ireland) and Woodward, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ingersoll-Rand PLC (Ireland)||0||6||5||0||2.45|
Ingersoll-Rand PLC (Ireland) presently has a consensus price target of $100.67, suggesting a potential upside of 13.72%. Woodward has a consensus price target of $74.75, suggesting a potential upside of 5.22%. Given Ingersoll-Rand PLC (Ireland)’s higher probable upside, research analysts clearly believe Ingersoll-Rand PLC (Ireland) is more favorable than Woodward.
Risk and Volatility
Ingersoll-Rand PLC (Ireland) has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Woodward has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
About Ingersoll-Rand PLC (Ireland)
Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
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