Ingersoll-Rand (NYSE:IR) and Fujitsu General (OTCMKTS:FGELF) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Dividends

Ingersoll-Rand pays an annual dividend of $2.12 per share and has a dividend yield of 2.2%. Fujitsu General does not pay a dividend. Ingersoll-Rand pays out 47.0% of its earnings in the form of a dividend. Ingersoll-Rand has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

79.7% of Ingersoll-Rand shares are held by institutional investors. 0.7% of Ingersoll-Rand shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Ingersoll-Rand and Fujitsu General, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingersoll-Rand 0 3 12 0 2.80
Fujitsu General 0 0 0 0 N/A

Ingersoll-Rand presently has a consensus price target of $111.15, suggesting a potential upside of 13.45%. Given Ingersoll-Rand’s higher probable upside, equities analysts clearly believe Ingersoll-Rand is more favorable than Fujitsu General.

Volatility and Risk

Ingersoll-Rand has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Fujitsu General has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Profitability

This table compares Ingersoll-Rand and Fujitsu General’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingersoll-Rand 10.03% 18.75% 7.30%
Fujitsu General N/A N/A N/A

Earnings and Valuation

This table compares Ingersoll-Rand and Fujitsu General’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingersoll-Rand $14.20 billion 1.70 $1.30 billion $4.51 21.73
Fujitsu General $2.37 billion 0.63 $121.30 million $1.11 12.33

Ingersoll-Rand has higher revenue and earnings than Fujitsu General. Fujitsu General is trading at a lower price-to-earnings ratio than Ingersoll-Rand, indicating that it is currently the more affordable of the two stocks.

Summary

Ingersoll-Rand beats Fujitsu General on 15 of the 16 factors compared between the two stocks.

About Ingersoll-Rand

Ingersoll-Rand plc designs, manufactures, sells, and services industrial and commercial products. It operates through Climate and Industrial segments. The Climate segment offers building management, bus, rail, and multi-pipe HVAC, control, container and cryogenic, diesel-powered, ductless, geothermal, package heating and cooling, rail and self-powered truck refrigeration, temporary heating and cooling, trailer refrigeration, unitary, and vehicle-powered truck refrigeration systems. This segment also provides air conditioners, air exchangers and handlers, airside and terminal devices, auxiliary power units, chillers, coils and condensers, gensets, furnaces, heat pumps, home automation, and humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality, industrial refrigeration, motor replacements, performance contracting, refrigerant reclamation, thermostats/controls, transport heater products, and water source heat pumps. In addition, this segment offers energy and facility management, installation contracting, rental, and repair and maintenance services. The Industrial segment provides air treatment and separation, engine starting, ergonomic material handling, fluid handling, precision fastening, and mobile golf information systems; and compressors, airends, blowers, dryers, filters, golf vehicles, hoists, fluid power components, power tools, pumps, rough terrain vehicles, utility and low-speed vehicles, and winches, as well as controls, parts, accessories, and consumables. It also provides aftermarket, OEM parts, and supplies. The company markets and sells its products under the American Standard, ARO, Club Car, Nexia, Thermo King, and Trane brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide. Ingersoll-Rand plc was founded in 1872 and is headquartered in Swords, Ireland.

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