Head to Head Survey: AB Volvo (publ) (OTCMKTS:VOLVF) and IDEX (NYSE:IEX)

IDEX (NYSE:IEX) and AB Volvo (publ) (OTCMKTS:VOLVF) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Valuation and Earnings

This table compares IDEX and AB Volvo (publ)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDEX	$3.46 billion	4.88	$483.20 million	$6.95	32.94
AB Volvo (publ)	N/A	N/A	N/A	C$2.73	13.19

IDEX has higher revenue and earnings than AB Volvo (publ). AB Volvo (publ) is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.

Dividends

IDEX pays an annual dividend of $2.92 per share and has a dividend yield of 1.3%. AB Volvo (publ) pays an annual dividend of C$3.00 per share and has a dividend yield of 8.3%. IDEX pays out 42.0% of its earnings in the form of a dividend. AB Volvo (publ) pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDEX has increased its dividend for 16 consecutive years.

Insider and Institutional Ownership

98.0% of IDEX shares are owned by institutional investors. Comparatively, 24.4% of AB Volvo (publ) shares are owned by institutional investors. 0.5% of IDEX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for IDEX and AB Volvo (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDEX	0	2	8	0	2.80
AB Volvo (publ)	0	0	0	0	0.00

IDEX currently has a consensus price target of $260.80, suggesting a potential upside of 13.91%. Given IDEX’s stronger consensus rating and higher possible upside, research analysts plainly believe IDEX is more favorable than AB Volvo (publ).

Profitability

This table compares IDEX and AB Volvo (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDEX	14.49%	15.69%	9.10%
AB Volvo (publ)	N/A	N/A	N/A

Summary

IDEX beats AB Volvo (publ) on 13 of the 14 factors compared between the two stocks.

About IDEX

IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics positive displacement pumps, powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, and precision photonic solutions. This segment serves food and beverage, life sciences, analytical instruments, pharmaceutical and biopharmaceutical, industrial, semiconductor, automotive/transportation, medical/dental, energy, cosmetics, marine, chemical, wastewater and water treatment, research and aerospace/defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.

About AB Volvo (publ)

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.