Critical Survey: Woodward (WWD) and Rexnord Corporation (RXN)
Woodward (NASDAQ: WWD) and Rexnord Corporation (NYSE:RXN) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
This table compares Woodward and Rexnord Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Woodward has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Rexnord Corporation has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Woodward and Rexnord Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Woodward presently has a consensus target price of $74.75, suggesting a potential downside of 3.34%. Rexnord Corporation has a consensus target price of $26.00, suggesting a potential upside of 1.88%. Given Rexnord Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Rexnord Corporation is more favorable than Woodward.
Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Rexnord Corporation does not pay a dividend. Woodward pays out 15.8% of its earnings in the form of a dividend.
Institutional & Insider Ownership
71.3% of Woodward shares are held by institutional investors. 5.9% of Woodward shares are held by insiders. Comparatively, 3.5% of Rexnord Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Woodward and Rexnord Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Woodward||$2.08 billion||2.28||$342.57 million||$3.17||24.39|
|Rexnord Corporation||$1.93 billion||1.37||$327.90 million||$0.67||38.09|
Woodward has higher revenue and earnings than Rexnord Corporation. Woodward is trading at a lower price-to-earnings ratio than Rexnord Corporation, indicating that it is currently the more affordable of the two stocks.
Woodward beats Rexnord Corporation on 10 of the 15 factors compared between the two stocks.
Woodward Company Profile
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
Rexnord Corporation Company Profile
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
Receive News & Ratings for Woodward Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Woodward Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.