Paul Mueller (OTCMKTS:MUEL) vs. Standex International (NYSE:SXI) Financial Analysis

Paul Mueller (OTCMKTS:MUEL) and Standex International (NYSE:SXI) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Valuation and Earnings

This table compares Paul Mueller and Standex International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paul Mueller	$248.59 million	1.76	$29.67 million	$40.20	12.06
Standex International	$790.11 million	3.80	$55.76 million	$4.36	56.83

Standex International has higher revenue and earnings than Paul Mueller. Paul Mueller is trading at a lower price-to-earnings ratio than Standex International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

90.4% of Standex International shares are held by institutional investors. 4.0% of Paul Mueller shares are held by insiders. Comparatively, 2.5% of Standex International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Paul Mueller has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Standex International has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Dividends

Paul Mueller pays an annual dividend of $1.20 per share and has a dividend yield of 0.2%. Standex International pays an annual dividend of $1.36 per share and has a dividend yield of 0.5%. Paul Mueller pays out 3.0% of its earnings in the form of a dividend. Standex International pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Standex International has increased its dividend for 14 consecutive years. Standex International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Paul Mueller and Standex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paul Mueller	12.37%	36.21%	18.19%
Standex International	6.29%	14.20%	6.37%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Paul Mueller and Standex International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paul Mueller	0	0	0	0	0.00
Standex International	0	1	4	0	2.80

Standex International has a consensus target price of $264.00, indicating a potential upside of 6.55%. Given Standex International’s stronger consensus rating and higher possible upside, analysts plainly believe Standex International is more favorable than Paul Mueller.

Summary

Standex International beats Paul Mueller on 11 of the 17 factors compared between the two stocks.

About Paul Mueller

Paul Mueller Company, together with its subsidiaries, provides manufactured equipment and components in the United States, North America, Asia, the Far East, the Netherlands, EU countries, Europe, and internationally. The company operates through four reportable segments: Dairy Farm Equipment, Industrial Equipment, Field Fabrication, and Transportation. The Dairy Farm Equipment segment offers milk cooling and storage equipment and accessories, refrigeration units, and heat recovery equipment for use on dairy farms to independent dealers for resale, and directly to farmers; and services for farmers, as well as milk coolers for rent to farmers. The Industrial Equipment segment sells food, beverage, chemical, and industrial processing equipment; and biopharmaceutical and pure water equipment, as well as stainless steel, alloy processing, storage tanks, and heat transfer products. The Field Fabrication segment sells large, field-fabricated tanks and vessels, such as stainless steel storage tanks for sanitary and industrial process applications. The Transportation segment offers delivery of products to customers; backhauls of materials and components; and contract carriage for third parties. It serves its products in various industries, including animal health, beverage, brewing, chemical, dairy farm, dairy processing, food, heat transfer, HVAC, industrial construction, oil and gas, personal care, pharmaceutical, pure water, tank fabrication, and wine. The company was founded in 1940 and is headquartered in Springfield, Missouri.

About Standex International

Standex International Corporation, together with subsidiaries, engages in the manufacture and sale of various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and custom wound transformers and inductors for low and high frequency, current sense technology, advanced planar transformer technology, value added assembly, and mechanical packaging applications under the Standex Electronics, Renco, and Agile Magnetics. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries under the Piazza Rosa, World Client Services, Tenibac-Graphion, GS Engineering, and Innovent brand names. The Scientific segment offers temperature-controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets under the American BioTech Supply, Lab Research Products, Corepoint, Cryosafe, CryoGuard, and Scientific brands. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets under the Spincraft brand. The Specialty Solutions segment manufactures and sells refrigerated, heated, and dry merchandizing display cases; and single and double acting telescopic, and piston rod hydraulic cylinders under the Federal and Custom Hoist brands. The company was founded in 1955 and is headquartered in Salem, New Hampshire.