Pall (NYSE: PLL) and Dover Corporation (NYSE:DOV) are both large-cap industrial machinery & equipment – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Dividends

Dover Corporation pays an annual dividend of $1.88 per share and has a dividend yield of 2.0%. Pall does not pay a dividend. Dover Corporation pays out 43.7% of its earnings in the form of a dividend. Pall has raised its dividend for 61 consecutive years and Dover Corporation has raised its dividend for 9 consecutive years.

Institutional & Insider Ownership

85.0% of Dover Corporation shares are held by institutional investors. 2.5% of Dover Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pall and Dover Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pall 14.12% 24.23% 10.41%
Dover Corporation 8.91% 14.10% 5.52%

Valuation & Earnings

This table compares Pall and Dover Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pall N/A N/A N/A $3.56 35.71
Dover Corporation $6.79 billion 2.20 $508.89 million $4.30 22.36

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Pall and Dover Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pall 0 0 0 0 N/A
Dover Corporation 0 10 7 0 2.41

Dover Corporation has a consensus price target of $94.09, suggesting a potential downside of 2.15%. Given Dover Corporation’s higher probable upside, analysts clearly believe Dover Corporation is more favorable than Pall.

Summary

Dover Corporation beats Pall on 7 of the 12 factors compared between the two stocks.

Pall Company Profile

Pall Corporation is a filtration, separation and purification company. The Company is a supplier of filtration, separation and purification technologies, principally made by the Company using its engineering capability and fluid management, filter media, and other fluid clarification and separations equipment for the removal of solid, liquid and gaseous contaminants from a variety of liquids and gases. The Company serves customers through two businesses globally: Life Sciences and Industrial. The Life Sciences business group is focused on developing, manufacturing and selling products to customers in the Medical, BioPharmaceuticals and Food & Beverage markets. The Industrial business group is focused on developing, manufacturing and selling products to customers in the Process Technologies, Aerospace and Microelectronics markets.

Dover Corporation Company Profile

Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.

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