Financial Analysis: A. O. Smith (AOS) and Viomi Technology (VIOT)

A. O. Smith (NYSE:AOS) and Viomi Technology (NASDAQ:VIOT) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares A. O. Smith and Viomi Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A. O. Smith 10.83% 24.98% 13.77%
Viomi Technology N/A N/A N/A

Dividends

A. O. Smith pays an annual dividend of $0.88 per share and has a dividend yield of 1.8%. Viomi Technology does not pay a dividend. A. O. Smith pays out 40.6% of its earnings in the form of a dividend. A. O. Smith has increased its dividend for 12 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for A. O. Smith and Viomi Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A. O. Smith 1 2 5 0 2.50
Viomi Technology 0 0 2 0 3.00

A. O. Smith currently has a consensus price target of $65.71, indicating a potential upside of 36.65%. Viomi Technology has a consensus price target of $11.45, indicating a potential upside of 22.99%. Given A. O. Smith’s higher probable upside, equities analysts clearly believe A. O. Smith is more favorable than Viomi Technology.

Valuation and Earnings

This table compares A. O. Smith and Viomi Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A. O. Smith $3.00 billion 2.74 $296.50 million $2.17 22.16
Viomi Technology N/A N/A N/A N/A N/A

A. O. Smith has higher revenue and earnings than Viomi Technology.

Institutional and Insider Ownership

75.4% of A. O. Smith shares are owned by institutional investors. Comparatively, 0.0% of Viomi Technology shares are owned by institutional investors. 1.3% of A. O. Smith 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.

Summary

A. O. Smith beats Viomi Technology on 10 of the 12 factors compared between the two stocks.

A. O. Smith Company Profile

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for use in space heating applications for hospitals, schools, hotels, and other large commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtrations products for residences, restaurants, hotels, and offices. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pump and combi boilers, solar units, and air purification products. The company distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms. A. O. Smith Corporation is headquartered in Milwaukee, Wisconsin.

Viomi Technology Company Profile

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising smart water kettles, washing machines, water heaters, and others. It also provides a suite of complementary consumable products; and sells value-added businesses. The company has a strategic partner with Xiaomi Corporation. Viomi Technology Co., Ltd was founded in 2014 and is headquartered in Guangzhou, China.

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