Rotork (OTCMKTS:RTOXY) vs. Crane (NYSE:CR) Head to Head Analysis

Rotork (OTCMKTS:RTOXY) and Crane (NYSE:CR) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Dividends

Rotork pays an annual dividend of $0.35 per share and has a dividend yield of 2.0%. Crane pays an annual dividend of $1.02 per share and has a dividend yield of 0.5%. Rotork pays out 53.0% of its earnings in the form of a dividend. Crane pays out 17.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crane has increased its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Rotork and Crane”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rotork	$854.71 million	4.43	$120.16 million	$0.66	26.29
Crane	$2.59 billion	4.89	$401.10 million	$5.72	38.36

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

Analyst Recommendations

This is a breakdown of current recommendations for Rotork and Crane, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rotork	0	0	0	0	0.00
Crane	0	1	4	3	3.25

Crane has a consensus price target of $236.33, suggesting a potential upside of 7.70%. Given Crane’s stronger consensus rating and higher probable upside, analysts plainly believe Crane is more favorable than Rotork.

Profitability

This table compares Rotork and Crane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rotork	N/A	N/A	N/A
Crane	13.10%	24.45%	10.14%

Institutional and Insider Ownership

75.1% of Crane shares are held by institutional investors. 2.1% of Crane shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Rotork has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Crane has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

Crane beats Rotork on 17 of the 18 factors compared between the two stocks.

About Rotork

Rotork plc designs, manufactures, and markets flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical process, and industrial applications worldwide. It operates through four segments: Controls, Fluid Systems, Gears, and Instruments. The company offers electric, pneumatic, and hydraulic actuators. It also provides gearboxes and valve accessories comprising multi-turn and quarter-turn gearboxes, smart position indicators, direct mount chain wheels, valve accessories, roto hammers, and master gear products. In addition, the company offers instrumentation and control products, such as instrument valves, controllers, and measurement products; and pneumatic valves and manifolds, which include air preparation equipment, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. Further, it provides power transmission products; and actuator workshop overhaul, field support, client support programme, planned shutdown support, valve automation center, technical support, and training services. The company serves oil and gas, power generation, water and sewage, marine, and mining sectors. Rotork plc was incorporated in 1957 and is headquartered in Bath, the United Kingdom.

About Crane

Crane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. The company operates in three segments: Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts for commercial aerospace, as well as the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for commercial aircraft and fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission-critical applications. It offers process valves and related products, such as lined pipe, fittings and hoses, air-operated diaphragm and peristaltic pumps, instrumentation and sampling systems, valve positioning and control systems, and valve diagnostic and calibration systems; commercial valves; and pumps and systems. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils for use in the manufacturing of recreational vehicles, as well as in commercial and industrial building applications. This segment sells directly to RV, trailer, and truck manufacturers, as well as through distributors and retailers. The company provides its products and solutions to end markets, including commercial and military aerospace, defense, and space; chemical and pharmaceutical production; water and wastewater; non-residential and municipal construction; energy; and other general industrial and consumer-related applications. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.