Rexnord (RXN) and Mueller Water Products (MWA) Critical Comparison
Rexnord (NYSE: RXN) and Mueller Water Products (NYSE:MWA) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider and Institutional Ownership
99.8% of Rexnord shares are held by institutional investors. Comparatively, 86.9% of Mueller Water Products shares are held by institutional investors. 3.5% of Rexnord shares are held by insiders. Comparatively, 3.0% of Mueller Water Products shares are held by 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.
This table compares Rexnord and Mueller Water Products’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rexnord||$1.92 billion||1.61||$74.10 million||$0.83||35.76|
|Mueller Water Products||$826.00 million||2.19||$123.30 million||$0.38||30.00|
Mueller Water Products has lower revenue, but higher earnings than Rexnord. Mueller Water Products is trading at a lower price-to-earnings ratio than Rexnord, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Rexnord has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Mueller Water Products has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
This table compares Rexnord and Mueller Water Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mueller Water Products||20.51%||15.25%||5.99%|
Mueller Water Products pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Rexnord does not pay a dividend. Mueller Water Products pays out 52.6% of its earnings in the form of a dividend. Rexnord has raised its dividend for 3 consecutive years.
This is a summary of current recommendations for Rexnord and Mueller Water Products, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mueller Water Products||1||2||4||0||2.43|
Rexnord presently has a consensus price target of $30.50, indicating a potential upside of 2.76%. Mueller Water Products has a consensus price target of $13.71, indicating a potential upside of 20.30%. Given Mueller Water Products’ higher probable upside, analysts clearly believe Mueller Water Products is more favorable than Rexnord.
Rexnord beats Mueller Water Products on 10 of the 17 factors compared between the two stocks.
Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.
About Mueller Water Products
Mueller Water Products, Inc. is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. The Company operates through three segments: Mueller Co., Anvil and Mueller Technologies. The Mueller Co. segment manufactures valves for water and gas systems, and dry-barrel and wet-barrel fire hydrants. The Anvil segment manufactures and sources a range of products, including a range of fittings, couplings, hangers and related products. The Mueller Technologies segment offers metering systems, leak detection, pipe condition assessment and other products and services for the water infrastructure industry. The Mueller Technologies segment includes Mueller Systems and Echologics businesses. The Company offers a range of water infrastructure, flow control and piping component system products and services in the United States and Canada.
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