Critical Comparison: Luxfer (LXFR) and Its Rivals

Luxfer (NYSE:LXFR) is one of 436 public companies in the “Machinery” industry, but how does it weigh in compared to its rivals? We will compare Luxfer to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Valuation & Earnings

This table compares Luxfer and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Luxfer	$384.60 million	$7.70 million	75.28
Luxfer Competitors	$4.78 billion	$362.65 million	4.75

Luxfer’s rivals have higher revenue and earnings than Luxfer. Luxfer is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Luxfer has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Luxfer’s rivals have a beta of 5.12, meaning that their average stock price is 412% more volatile than the S&P 500.

Profitability

This table compares Luxfer and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luxfer	1.71%	11.86%	6.92%
Luxfer Competitors	-1,039.03%	-14.89%	0.54%

Dividends

Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Luxfer pays out 226.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend.

Institutional & Insider Ownership

90.8% of Luxfer shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are owned by institutional investors. 2.0% of Luxfer shares are owned by insiders. Comparatively, 14.1% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Luxfer and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	1	2	0	1	2.25
Luxfer Competitors	4206	14712	18224	808	2.41

Luxfer currently has a consensus price target of $16.40, suggesting a potential downside of 5.28%. As a group, “Machinery” companies have a potential upside of 34.84%. Given Luxfer’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Luxfer has less favorable growth aspects than its rivals.

Summary

Luxfer rivals beat Luxfer on 8 of the 15 factors compared.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.