SPX Corporation (NYSE: SPXC) and KLX (NASDAQ:KLXI) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Insider & Institutional Ownership

85.4% of SPX Corporation shares are owned by institutional investors. 0.6% of SPX Corporation shares are owned by insiders. Comparatively, 1.8% of KLX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

SPX Corporation has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, KLX has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for SPX Corporation and KLX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX Corporation 0 0 0 0 N/A
KLX 0 2 3 0 2.60

KLX has a consensus price target of $55.00, indicating a potential upside of 17.60%. Given KLX’s higher possible upside, analysts plainly believe KLX is more favorable than SPX Corporation.

Profitability

This table compares SPX Corporation and KLX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPX Corporation -5.15% 32.10% 3.67%
KLX 4.83% 4.43% 2.66%

Valuation and Earnings

This table compares SPX Corporation and KLX’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SPX Corporation $1.43 billion 0.77 $88.70 million ($1.83) -14.10
KLX $1.60 billion 1.50 $240.70 million $1.50 31.18

KLX has higher revenue and earnings than SPX Corporation. SPX Corporation is trading at a lower price-to-earnings ratio than KLX, indicating that it is currently the more affordable of the two stocks.

Summary

KLX beats SPX Corporation on 9 of the 13 factors compared between the two stocks.

SPX Corporation Company Profile

SPX Corporation is a global supplier of infrastructure equipment. The Company operates through three segments: HVAC; Detection and Measurement, and Engineered Solutions. The HVAC solutions offered by its businesses include package cooling towers, residential and commercial boilers, heating and ventilation products. Its detection and measurement product lines encompass underground pipe and cable locators, and inspection equipment. Within its power platform, it is a manufacturer of medium and large power transformers, as well as equipment for various types of power plant, including cooling equipment, heat exchangers and pollution control systems. As of December 31, 2016, the Company had operations in approximately 15 countries.

KLX Company Profile

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

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