Flowserve (NYSE:FLS) & Oshkosh (NYSE:OSK) Head-To-Head Survey

Flowserve (NYSE:FLS) and Oshkosh (NYSE:OSK) are both mid-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation & Earnings

This table compares Flowserve and Oshkosh”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flowserve	$4.73 billion	1.96	$346.25 million	$2.85	25.63
Oshkosh	$10.42 billion	0.78	$647.00 million	$8.74	14.97

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

Insider and Institutional Ownership

93.9% of Flowserve shares are owned by institutional investors. Comparatively, 92.4% of Oshkosh shares are owned by institutional investors. 0.7% of Flowserve shares are owned by company insiders. Comparatively, 0.6% of Oshkosh shares are owned by company 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 Flowserve and Oshkosh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flowserve	8.01%	21.42%	8.34%
Oshkosh	5.24%	12.95%	5.86%

Analyst Ratings

This is a breakdown of recent ratings for Flowserve and Oshkosh, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flowserve	0	4	7	0	2.64
Oshkosh	0	6	11	0	2.65

Flowserve presently has a consensus target price of $86.60, indicating a potential upside of 18.55%. Oshkosh has a consensus target price of $170.71, indicating a potential upside of 30.46%. Given Oshkosh’s stronger consensus rating and higher probable upside, analysts clearly believe Oshkosh is more favorable than Flowserve.

Dividends

Flowserve pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Oshkosh pays an annual dividend of $2.28 per share and has a dividend yield of 1.7%. Flowserve pays out 30.9% of its earnings in the form of a dividend. Oshkosh pays out 26.1% 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. Flowserve has increased its dividend for 1 consecutive years and Oshkosh has increased its dividend for 13 consecutive years. Oshkosh is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Flowserve has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Summary

Oshkosh beats Flowserve on 10 of the 17 factors compared between the two stocks.

About Flowserve

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets. The FCD segment provides engineered and industrial valve and automation systems, including isolation and control valves, actuation, controls, and related equipment; and equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and multi-phase fluids. It primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was founded in 1790 and is headquartered in Irving, Texas.

About Oshkosh

Oshkosh Corporation provides purpose-built vehicles and equipment worldwide. The company operates through three segments: Access, Defense, and Vocational segment. Its Access Equipment segment design and manufacture aerial work platform and telehandlers for use in construction, industrial, and maintenance applications; offers financing and leasing solutions including rental fleet loans, leases, and floor plan and retail financing; and towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts. The Defense segment engages in the manufacture and sale of heavy, medium, and light tactical wheeled vehicles and related services for department of defense. Its Vocational segment offers custom and commercial firefighting equipment, fire apparatus, and emergency vehicles, including pumpers, aerial platform, ladder and tiller trucks, and tankers; light, medium, and heavy-duty rescue vehicles; and wildland rough terrain response, bomb squad, hazardous materials control vehicles, mobile command and control centers, and other emergency response vehicles. Additionally, this segment produces and sells custom and commercial firefighting vehicles, as well as command vehicles, ARFF vehicles; design and manufacture refuse collection vehicles for waste services industry; front discharge concrete mixers for the concrete ready-mix industry; and field service vehicles and truck-mounted cranes for construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Further, the company provides its products through direct sales representatives, dealers, and distributors. Oshkosh Corporation was formerly known as Oshkosh Truck Corporation. The company was founded in 1917 and is headquartered in Oshkosh, Wisconsin.