Critical Analysis: Standex International Corporation (SXI) and Energy Recovery (ERII)
Standex International Corporation (NYSE: SXI) and Energy Recovery (NASDAQ:ERII) are both small-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
This is a breakdown of current ratings and price targets for Standex International Corporation and Energy Recovery, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Standex International Corporation||0||1||2||0||2.67|
Standex International Corporation presently has a consensus price target of $115.00, suggesting a potential upside of 20.42%. Energy Recovery has a consensus price target of $18.40, suggesting a potential upside of 180.92%. Given Energy Recovery’s stronger consensus rating and higher probable upside, analysts plainly believe Energy Recovery is more favorable than Standex International Corporation.
This table compares Standex International Corporation and Energy Recovery’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Standex International Corporation||6.08%||14.76%||7.35%|
Valuation and Earnings
This table compares Standex International Corporation and Energy Recovery’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Standex International Corporation||$755.26 million||1.62||$98.18 million||$3.60||26.53|
|Energy Recovery||$55.87 million||6.28||$3.95 million||$0.03||218.41|
Standex International Corporation has higher revenue and earnings than Energy Recovery. Standex International Corporation is trading at a lower price-to-earnings ratio than Energy Recovery, indicating that it is currently the more affordable of the two stocks.
Standex International Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 0.7%. Energy Recovery does not pay a dividend. Standex International Corporation pays out 17.8% of its earnings in the form of a dividend. Energy Recovery has increased its dividend for 7 consecutive years.
Risk and Volatility
Standex International Corporation has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Energy Recovery has a beta of 5.54, meaning that its share price is 454% more volatile than the S&P 500.
Insider & Institutional Ownership
87.5% of Standex International Corporation shares are held by institutional investors. Comparatively, 33.7% of Energy Recovery shares are held by institutional investors. 2.1% of Standex International Corporation shares are held by company insiders. Comparatively, 23.6% of Energy Recovery shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Energy Recovery beats Standex International Corporation on 9 of the 17 factors compared between the two stocks.
Standex International Corporation Company Profile
Standex International Corporation is a diversified manufacturing company. The Company is a manufacturer of a range of products and services for diverse commercial and industrial market segments. The Company has 11 operating segments, aggregated and organized into five segments: Food Service Equipment, Engraving, Engineering Technologies, Electronics and Hydraulics. The Food Service Equipment business consists of Refrigeration Solutions group, Cooking Solutions group and Specialty Solutions group. The Engraving segment’s product lines include Mold-Tech and Innovent. The Engineering Technologies segment provides engineered parts in all workable metal alloys using various forming processes. The Electronics segment is a manufacturer of custom magnetic sensing and power conversion components and assemblies. The Hydraulics segment is a manufacturer of mobile hydraulic cylinders, including single or double acting telescopic, and piston rod hydraulic cylinders.
Energy Recovery Company Profile
Energy Recovery, Inc. is an energy solutions provider to industrial fluid flow markets. The Company’s solutions convert wasted pressure energy into a reusable asset and preserve or eliminate pumping technology in hostile processing environments. Its segments include Water, Oil & Gas, and Corporate. The Water Segment focuses on products sold for use in reverse osmosis water desalination. The Oil & Gas Segment consists of products sold for use in hydraulic fracturing, gas processing, and chemical processing. The Company offers energy recovery devices (ERDs) in the water desalination market with its pressure exchanger (PX) and turbocharger technologies. The Company offers VorTeq hydraulic fracturing system, IsoBoost, and IsoGen product lines to the oil and gas market. The Company’s customers include engineering, procurement and construction companies, original equipment manufacturers, international oil companies, national oil companies, and exploration and production companies.
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