American Noble Gas (NYSE:INFY) & Vertiv (NYSE:VRT) Critical Review

Vertiv (NYSE:VRT) and American Noble Gas (NYSE:INFY) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares Vertiv and American Noble Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertiv	$8.01 billion	8.64	$495.80 million	$2.65	68.30
American Noble Gas	$19.69 billion	3.68	$3.16 billion	$0.78	22.38

American Noble Gas has higher revenue and earnings than Vertiv. American Noble Gas is trading at a lower price-to-earnings ratio than Vertiv, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

89.9% of Vertiv shares are owned by institutional investors. Comparatively, 16.2% of American Noble Gas shares are owned by institutional investors. 5.0% of Vertiv shares are owned by company insiders. Comparatively, 22.4% of American Noble Gas shares are owned by company 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.

Profitability

This table compares Vertiv and American Noble Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertiv	10.67%	50.82%	14.98%
American Noble Gas	16.58%	29.40%	18.87%

Dividends

Vertiv pays an annual dividend of $0.25 per share and has a dividend yield of 0.1%. American Noble Gas pays an annual dividend of $0.44 per share and has a dividend yield of 2.5%. Vertiv pays out 9.4% of its earnings in the form of a dividend. American Noble Gas pays out 56.4% 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. Vertiv has increased its dividend for 2 consecutive years.

Volatility and Risk

Vertiv has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, American Noble Gas has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Vertiv and American Noble Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1	5	21	2	2.83
American Noble Gas	2	7	3	1	2.23

Vertiv currently has a consensus target price of $177.81, suggesting a potential downside of 1.76%. American Noble Gas has a consensus target price of $16.65, suggesting a potential downside of 4.61%. Given Vertiv’s stronger consensus rating and higher possible upside, equities analysts clearly believe Vertiv is more favorable than American Noble Gas.

Summary

Vertiv beats American Noble Gas on 12 of the 18 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

About American Noble Gas

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.