Reviewing Morgan Advanced Materials (OTCMKTS:MCRUF) and Flowserve (NYSE:FLS)

Morgan Advanced Materials (OTCMKTS:MCRUF) and Flowserve (NYSE:FLS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Profitability

This table compares Morgan Advanced Materials and Flowserve’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morgan Advanced Materials	N/A	N/A	N/A
Flowserve	6.28%	18.25%	7.12%

Insider and Institutional Ownership

93.9% of Flowserve shares are held by institutional investors. 0.8% of Flowserve shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Morgan Advanced Materials has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Flowserve has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Morgan Advanced Materials and Flowserve”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Morgan Advanced Materials	$1.41 billion	N/A	$64.28 million	N/A	N/A
Flowserve	$4.56 billion	1.50	$282.76 million	$2.21	23.72

Flowserve has higher revenue and earnings than Morgan Advanced Materials.

Analyst Recommendations

This is a summary of current recommendations for Morgan Advanced Materials and Flowserve, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morgan Advanced Materials	0	1	1	0	2.50
Flowserve	0	1	9	1	3.00

Flowserve has a consensus price target of $65.78, indicating a potential upside of 25.48%. Given Flowserve’s stronger consensus rating and higher possible upside, analysts plainly believe Flowserve is more favorable than Morgan Advanced Materials.

Summary

Flowserve beats Morgan Advanced Materials on 12 of the 12 factors compared between the two stocks.

About Morgan Advanced Materials

Morgan Advanced Materials plc operates as a materials science and application engineering company primarily the United Kingdom. It serves customers in the industrial, transportation, petrochemical and chemical, energy, semiconductor and electronics, healthcare, and security and defense markets. The company was formerly known as The Morgan Crucible Company plc and changed its name to Morgan Advanced Materials plc in March 2013. Morgan Advanced Materials plc was founded in 1856 and is headquartered in Windsor, the United Kingdom.

About Flowserve

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets. The FCD segment provides engineered and industrial valve and automation systems, including isolation and control valves, actuation, controls, and related equipment; and equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and multi-phase fluids. It primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was founded in 1790 and is headquartered in Irving, Texas.