Head to Head Analysis: Flowserve (NYSE:FLS) vs. CVD Equipment (NASDAQ:CVV)

Flowserve (NYSE:FLS) and CVD Equipment (NASDAQ:CVV) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Flowserve and CVD Equipment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flowserve	7.61%	21.46%	8.54%
CVD Equipment	-18.68%	-14.18%	-12.37%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Flowserve and CVD Equipment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flowserve	0	3	8	0	2.73
CVD Equipment	1	0	0	0	1.00

Flowserve currently has a consensus price target of $87.70, suggesting a potential upside of 11.69%. Given Flowserve’s stronger consensus rating and higher probable upside, equities analysts clearly believe Flowserve is more favorable than CVD Equipment.

Insider & Institutional Ownership

93.9% of Flowserve shares are held by institutional investors. Comparatively, 31.6% of CVD Equipment shares are held by institutional investors. 0.7% of Flowserve shares are held by insiders. Comparatively, 28.7% of CVD Equipment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Flowserve and CVD Equipment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flowserve	$4.73 billion	2.12	$346.25 million	$2.70	29.08
CVD Equipment	$25.79 million	1.85	-$1.59 million	($0.51)	-13.48

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

Risk & Volatility

Flowserve has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, CVD Equipment has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Summary

Flowserve beats CVD Equipment on 12 of the 14 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 CVD Equipment

CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells equipment to develop and manufacture materials and coatings in the United States and internationally. It operates through three segments: CVD Equipment, Stainless Design Concepts, and CVD Materials. The CVD Equipment segment offers chemical vapor deposition, physical vapor transport, and thermal process equipment under the FirstNano brand for various markets, such as high power electronics, aerospace advanced materials for gas turbine jet engines, and nanomaterials used in batteries, as well as semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial and research applications. The Stainless Design Concepts segment provides ultra-high purity gas and chemical delivery control systems, including gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, aerospace, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications. The CVD Materials segment offers products related to advanced materials and coatings, such as MesoPlasma printing services and products comprising heaters, antennas, and sensors to aerospace, satellite, power generation, defense, and other markets. The company also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces; and standard and custom fabricated quartz-ware used in its equipment and other customer tools. The company was incorporated in 1982 and is headquartered in Central Islip, New York.