Head-To-Head Analysis: Omega Flex (NASDAQ:OFLX) and The Weir Group (OTCMKTS:WEIGF)

Omega Flex (NASDAQ:OFLX) and The Weir Group (OTCMKTS:WEIGF) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Insider and Institutional Ownership

36.1% of Omega Flex shares are owned by institutional investors. Comparatively, 38.8% of The Weir Group shares are owned by institutional investors. 65.2% of Omega Flex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Omega Flex and The Weir Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Flex	1	0	0	0	1.00
The Weir Group	0	0	0	0	0.00

Valuation & Earnings

This table compares Omega Flex and The Weir Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Flex	$98.30 million	2.82	$14.83 million	$1.19	23.05
The Weir Group	N/A	N/A	N/A	$1.54	23.82

Omega Flex has higher revenue and earnings than The Weir Group. Omega Flex is trading at a lower price-to-earnings ratio than The Weir Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Omega Flex pays an annual dividend of $1.36 per share and has a dividend yield of 5.0%. The Weir Group pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Omega Flex pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Weir Group pays out 27.3% of its earnings in the form of a dividend. Omega Flex has raised its dividend for 7 consecutive years. Omega Flex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Omega Flex and The Weir Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Flex	12.27%	14.26%	11.54%
The Weir Group	N/A	N/A	N/A

Summary

Omega Flex beats The Weir Group on 8 of the 12 factors compared between the two stocks.

About Omega Flex

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.

About The Weir Group

The Weir Group PLC produces and sells highly engineered original equipment worldwide. It operates in two segments, Minerals and ESCO. The Minerals segment offers engineering, manufacturing, and service processing technology for the use in abrasive high-wear mining applications; and differentiated technology for the use in infrastructure and general industrial markets. The ESCO segment provides ground engaging tools for large mining machines. This segment also offers cloud-based Artificial Intelligence solutions to the mining industry; manufactures and distributes highly engineered wear parts; and offers aftermarket services to the mining industry. The company offers its products under the Accumin, All-Cast, Aspir, Bucyrus Blades, Carbide Plus, Cavex, Delta Industrial, Enduron, ESCO, EverSharp, GEHO, GeoVor, Infinity, Isogate, Kwik-Lok, Lewis, Linacure, Linagard, Linard, Linatex, Loadmaster, MaxTemp, Motion Metrics, Multiflo, Nemisys, Posilok, Production Master, ProFill, Sand,aster, Super V, SV2, Synertrex, TopLock, Trio, UltraEdge, Ultrlok, Uni-Lok, Vulco, Warman, and Whisler Plus brands. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.