Analyzing nVent Electric (NVT) and The Competition

nVent Electric (NYSE:NVT) is one of 56 publicly-traded companies in the “ELEC – MISC COMPONENTS” industry, but how does it contrast to its rivals? We will compare nVent Electric to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares nVent Electric and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
nVent Electric	$3.08 billion	$331.80 million	21.13
nVent Electric Competitors	$2.49 billion	$167.53 million	35.70

nVent Electric has higher revenue and earnings than its rivals. nVent Electric is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for nVent Electric and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nVent Electric	0	0	6	1	3.14
nVent Electric Competitors	82	1247	1571	107	2.57

nVent Electric currently has a consensus target price of $70.67, suggesting a potential downside of 4.44%. As a group, “ELEC – MISC COMPONENTS” companies have a potential upside of 2.49%. Given nVent Electric’s rivals higher possible upside, analysts clearly believe nVent Electric has less favorable growth aspects than its rivals.

Profitability

This table compares nVent Electric and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
nVent Electric	18.22%	13.54%	6.84%
nVent Electric Competitors	3.57%	-15.55%	1.52%

Risk & Volatility

nVent Electric has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, nVent Electric’s rivals have a beta of 0.98, indicating that their average share price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

90.1% of nVent Electric shares are held by institutional investors. Comparatively, 61.3% of shares of all “ELEC – MISC COMPONENTS” companies are held by institutional investors. 1.8% of nVent Electric shares are held by company insiders. Comparatively, 14.8% of shares of all “ELEC – MISC COMPONENTS” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

nVent Electric pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. nVent Electric pays out 22.9% of its earnings in the form of a dividend. As a group, “ELEC – MISC COMPONENTS” companies pay a dividend yield of 1.4% and pay out 0.3% of their earnings in the form of a dividend. nVent Electric has increased its dividend for 2 consecutive years. nVent Electric lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

nVent Electric beats its rivals on 10 of the 15 factors compared.

nVent Electric Company Profile

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.