Reviewing Schneider Electric (OTCMKTS:SBGSY) and Franklin Electric (NASDAQ:FELE)

Schneider Electric (OTCMKTS:SBGSY) and Franklin Electric (NASDAQ:FELE) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Earnings & Valuation

This table compares Schneider Electric and Franklin Electric”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schneider Electric	$41.29 billion	4.11	$4.62 billion	N/A	N/A
Franklin Electric	$2.02 billion	2.17	$180.31 million	$3.87	25.52

Schneider Electric has higher revenue and earnings than Franklin Electric.

Volatility and Risk

Schneider Electric has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Franklin Electric has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Institutional and Insider Ownership

0.8% of Schneider Electric shares are owned by institutional investors. Comparatively, 80.0% of Franklin Electric shares are owned by institutional investors. 2.7% of Franklin Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Schneider Electric and Franklin Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schneider Electric	N/A	N/A	N/A
Franklin Electric	8.71%	14.05%	9.47%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Schneider Electric and Franklin Electric, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schneider Electric	1	2	3	3	2.89
Franklin Electric	0	2	0	0	2.00

Franklin Electric has a consensus price target of $107.00, suggesting a potential upside of 8.34%. Given Franklin Electric’s higher probable upside, analysts clearly believe Franklin Electric is more favorable than Schneider Electric.

Dividends

Schneider Electric pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Franklin Electric pays an annual dividend of $1.06 per share and has a dividend yield of 1.1%. Franklin Electric pays out 27.4% of its earnings in the form of a dividend. Franklin Electric has raised its dividend for 33 consecutive years. Franklin Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

About Schneider Electric

Schneider Electric S.E. engages in the energy management and industrial automation businesses in the France, Western Europe, North America, the Asia Pacific, Eastern Europe, the Middle East, Africa, South America, and internationally. The company offers busway and cable management products, circuit breakers and switches, contactors and protection relays, electrical car charging, electrical protection and control products, energy management software solutions, load banks, power monitoring and control systems, power quality and power factor correction products, push buttons, switches, pilot lights and joysticks, surge protection and power conditioning services, switchboards and enclosures, and transfer switches. It also provides access control, controllers, expansion modules, servers and HMIs, fire and security products, sensors, valves and valve actuators, and variable speed and frequency drives; energy management and software solutions; feeder automation, grid automation, and SCADA software products; and medium voltage switchgears and transformers, outdoor equipment, substation automation products, and switchgear components. In addition, the company offers critical power and cooling services, data center cooling and software, IT power distribution products, prefabricated data center modules, racks and accessories, security and environmental monitoring, surge protection and power conditioning, and uninterruptible power supply products; and home automation and security, installation materials and systems, light switches, and electrical sockets. Further, the company provides human machine interface, industrial automation software and communication, interface relays, measurement and control relays, measurement and instrumentation products, motion controls and robotics, signaling units, solar and energy storage, power supplies, power protection and transformers, process control and safety, RFID systems, and other industrial automation and control products, as well as PLC, PAC, and dedicated controllers. Schneider Electric S.E.was founded in 1836 and is headquartered in Rueil-Malmaison, France.

About Franklin Electric

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.