Robbins & Myers (NYSE: RBN) and Watts Water Technologies (NYSE:WTS) are both industrial valve manufacturing companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

78.1% of Watts Water Technologies shares are owned by institutional investors. 1.1% of Watts Water Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Robbins & Myers and Watts Water Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Robbins & Myers N/A N/A N/A
Watts Water Technologies 6.49% 12.90% 5.78%

Analyst Ratings

This is a breakdown of current ratings and price targets for Robbins & Myers and Watts Water Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Robbins & Myers 0 0 0 0 N/A
Watts Water Technologies 0 6 3 0 2.33

Watts Water Technologies has a consensus target price of $71.60, suggesting a potential downside of 0.62%. Given Watts Water Technologies’ higher possible upside, analysts clearly believe Watts Water Technologies is more favorable than Robbins & Myers.

Dividends

Watts Water Technologies pays an annual dividend of $0.76 per share and has a dividend yield of 1.1%. Robbins & Myers does not pay a dividend. Watts Water Technologies pays out 28.1% of its earnings in the form of a dividend. Robbins & Myers has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Robbins & Myers and Watts Water Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Robbins & Myers N/A N/A N/A N/A N/A
Watts Water Technologies $1.40 billion 1.76 $84.20 million $2.70 26.69

Watts Water Technologies has higher revenue and earnings than Robbins & Myers.

Summary

Watts Water Technologies beats Robbins & Myers on 9 of the 11 factors compared between the two stocks.

About Robbins & Myers

Robbins & Myers, Inc. is a supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets. The Company operates in two segments: Energy Services and Process & Flow Control. Its Energy Services business segment, which includes T-3, designs, manufactures, markets, repairs and services equipment and systems used in upstream oil and gas exploration and recovery, production and completion, pipeline transmission infrastructure and a variety of other industrial applications. Its Process and Flow Control business segment designs, manufactures and services glass-lined reactors and storage vessels, industrial progressing cavity pumps, mixing equipment, and related products such as grinders for applications involving the flow of viscous, abrasive and solid-laden slurries and sludge, standard and customized fluid-agitation equipment and systems. In February 2013, National Oilwell Varco Inc acquired Robbins & Myers Inc.

About Watts Water Technologies

Watts Water Technologies, Inc. is a supplier of products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The Company, through its subsidiary, Watts Regulator Co., is engaged in manufacturing products and systems focused on the control, conservation and quality of water, and safety of the people using it. Its segments include Americas, Middle East and Africa and Asia-Pacific. It four product lines include: residential and commercial flow control products, which include products for plumbing and hot water applications; heating, ventilation and air conditioning and gas products, which include boilers, water heaters and heating solutions; drainage and water re-use products, which include drainage products and engineered rain water harvesting solutions, and water quality products, which include point-of-use and point-of-entry water filtration, conditioning and scale prevention systems.

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