Comparing nVent Electric (NYSE:NVT) and Sensata Technologies (NYSE:ST)

Sensata Technologies (NYSE:ST) and nVent Electric (NYSE:NVT) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Dividends

Sensata Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. nVent Electric pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Sensata Technologies pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. nVent Electric pays out 23.0% of its earnings in the form of a dividend. nVent Electric has increased its dividend for 2 consecutive years.

Earnings & Valuation

This table compares Sensata Technologies and nVent Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensata Technologies	$3.70 billion	1.66	$31.30 million	$0.60	70.29
nVent Electric	$3.89 billion	6.83	$710.20 million	$3.66	44.89

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

Volatility & Risk

Sensata Technologies has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sensata Technologies and nVent Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	5	4	0	2.30
nVent Electric	0	2	15	2	3.00

Sensata Technologies presently has a consensus price target of $48.80, indicating a potential upside of 15.71%. nVent Electric has a consensus price target of $199.50, indicating a potential upside of 21.43%. Given nVent Electric’s stronger consensus rating and higher probable upside, analysts clearly believe nVent Electric is more favorable than Sensata Technologies.

Profitability

This table compares Sensata Technologies and nVent Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensata Technologies	2.37%	18.68%	7.77%
nVent Electric	12.38%	18.85%	10.30%

Institutional & Insider Ownership

99.4% of Sensata Technologies shares are owned by institutional investors. Comparatively, 90.0% of nVent Electric shares are owned by institutional investors. 0.7% of Sensata Technologies shares are owned by insiders. Comparatively, 1.7% of nVent Electric shares are owned by 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.

Summary

nVent Electric beats Sensata Technologies on 15 of the 18 factors compared between the two stocks.

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.