SPX Corporation (NYSE: SPXC) and Ingersoll-Rand PLC (Ireland) (NYSE:IR) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Institutional & Insider Ownership

85.4% of SPX Corporation shares are held by institutional investors. Comparatively, 80.6% of Ingersoll-Rand PLC (Ireland) shares are held by institutional investors. 0.6% of SPX Corporation shares are held by company insiders. Comparatively, 0.7% of Ingersoll-Rand PLC (Ireland) shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

SPX Corporation has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Ingersoll-Rand PLC (Ireland) has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Dividends

Ingersoll-Rand PLC (Ireland) pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. SPX Corporation does not pay a dividend. Ingersoll-Rand PLC (Ireland) pays out 44.8% of its earnings in the form of a dividend. Ingersoll-Rand PLC (Ireland) has increased its dividend for 6 consecutive years.

Profitability

This table compares SPX Corporation and Ingersoll-Rand PLC (Ireland)’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%
Ingersoll-Rand PLC (Ireland) 7.60% 16.64% 6.40%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SPX Corporation and Ingersoll-Rand PLC (Ireland), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX Corporation 0 0 0 0 N/A
Ingersoll-Rand PLC (Ireland) 0 7 6 0 2.46

Ingersoll-Rand PLC (Ireland) has a consensus price target of $99.86, suggesting a potential upside of 9.87%. Given Ingersoll-Rand PLC (Ireland)’s higher probable upside, analysts plainly believe Ingersoll-Rand PLC (Ireland) is more favorable than SPX Corporation.

Valuation & Earnings

This table compares SPX Corporation and Ingersoll-Rand PLC (Ireland)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SPX Corporation $1.43 billion 0.86 $88.70 million ($1.83) -15.86
Ingersoll-Rand PLC (Ireland) $13.84 billion 1.67 $1.98 billion $4.02 22.61

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

Summary

Ingersoll-Rand PLC (Ireland) beats SPX Corporation on 11 of the 15 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.

Ingersoll-Rand PLC (Ireland) Company Profile

Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.

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