Financial Survey: Franklin Electric (NASDAQ:FELE) and ALSTOM/ADR (NASDAQ:ALSMY)
Franklin Electric (NASDAQ:FELE) and ALSTOM/ADR (OTCMKTS:ALSMY) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
Volatility and Risk
Franklin Electric has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, ALSTOM/ADR has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
This table compares Franklin Electric and ALSTOM/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Franklin Electric and ALSTOM/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Franklin Electric||$1.31 billion||1.84||$95.48 million||$2.07||25.37|
|ALSTOM/ADR||$9.12 billion||1.13||$519.21 million||$0.22||20.91|
ALSTOM/ADR has higher revenue and earnings than Franklin Electric. ALSTOM/ADR is trading at a lower price-to-earnings ratio than Franklin Electric, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Franklin Electric and ALSTOM/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Franklin Electric currently has a consensus price target of $60.00, indicating a potential upside of 14.24%. Given Franklin Electric’s stronger consensus rating and higher probable upside, equities analysts plainly believe Franklin Electric is more favorable than ALSTOM/ADR.
Institutional & Insider Ownership
76.6% of Franklin Electric shares are held by institutional investors. Comparatively, 0.1% of ALSTOM/ADR shares are held by institutional investors. 2.8% of Franklin Electric shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Franklin Electric pays an annual dividend of $0.62 per share and has a dividend yield of 1.2%. ALSTOM/ADR pays an annual dividend of $0.47 per share and has a dividend yield of 10.2%. Franklin Electric pays out 30.0% of its earnings in the form of a dividend. ALSTOM/ADR pays out 213.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Electric has raised its dividend for 10 consecutive years.
Franklin Electric beats ALSTOM/ADR on 13 of the 17 factors compared between the two stocks.
About Franklin Electric
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers submersible motors, pumps, drives, electronic controls, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, and industrial applications; and electronic drives and controls are used in motors for controlling functionality, as well as providing protection from various hazards, such as electrical surges, over-heating, and dry wells and tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in submersible fueling system applications. Its fuel pumping systems are used principally in total system solutions for underground gasoline, diesel, and biofuel systems. This segment serves other energy markets, such as power reliability systems, as well as includes intelligent electronic devices for online monitoring of the power utility, hydroelectric, and industrial markets. The Distribution segment sells to and provides pre-sale support and specifications to the installing contractors. It sells products produced by the Water Systems segment and other brands. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.
Alstom SA develops and markets systems, equipment, and services for the transport sector in Europe, the Americas, Asia and Pacific, the Middle-East, and Africa. The company offers metros, tramways, tram-trains, suburban trains, regional trains, high-speed trains, and passengers and freight locomotives; and signaling products, such as rail control systems, security and control, trackside, and interlocking products. It is also involved in the design and installation solutions for track laying; the electrification of and power supply to lines; and supply and installation electromechanical equipment. In addition, the company provides urban and main-line rail systems to manage trains, signaling, infrastructure, and services; and maintenance, modernization, parts and repair, and support services. Further, it offers various components, including bogies, motors, traction systems, switchgears, auxiliary converters, traction transformers, feeding systems, and dampers. Alstom SA has a strategic partnership with Cosmotech to develop a new application to improve the efficiency of a rail system. Alstom SA was incorporated in 1992 and is headquartered in Saint-Ouen, France.
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