Eaton Corporation, PLC (ETN) and Flow International Corp (FLOW) Critical Survey

Eaton Corporation, PLC (NYSE: ETN) and Flow International Corp (NASDAQ:FLOW) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Profitability

This table compares Eaton Corporation, PLC and Flow International Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eaton Corporation, PLC 9.95% 12.93% 6.40%
Flow International Corp N/A N/A N/A

Dividends

Eaton Corporation, PLC pays an annual dividend of $2.40 per share and has a dividend yield of 3.2%. Flow International Corp does not pay a dividend. Eaton Corporation, PLC pays out 54.8% of its earnings in the form of a dividend. Flow International Corp has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

75.9% of Eaton Corporation, PLC shares are held by institutional investors. 0.8% of Eaton Corporation, PLC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Eaton Corporation, PLC and Flow International Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eaton Corporation, PLC 2 9 7 0 2.28
Flow International Corp 1 2 4 0 2.43

Eaton Corporation, PLC currently has a consensus price target of $79.00, indicating a potential upside of 5.90%. Flow International Corp has a consensus price target of $39.25, indicating a potential upside of 9.70%. Given Flow International Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Flow International Corp is more favorable than Eaton Corporation, PLC.

Earnings & Valuation

This table compares Eaton Corporation, PLC and Flow International Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eaton Corporation, PLC $19.83 billion 1.67 $3.22 billion $4.38 17.03
Flow International Corp $1.89 billion 0.80 $190.40 million N/A N/A

Eaton Corporation, PLC has higher revenue and earnings than Flow International Corp.

Summary

Eaton Corporation, PLC beats Flow International Corp on 10 of the 15 factors compared between the two stocks.

About Eaton Corporation, PLC

Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. On January 1, 2011, it closed the acquisition of the Tuthill Coupling Group, which is a division of the Tuthill Corporation. It has five segments: Electrical Americas and Electrical Rest of World; Hydraulics; Aerospace; Truck, and Automotive. On October 1, 2010, it acquired CopperLogic, Inc. On July 15, 2010, it acquired EMC Engineers, Inc. In May 2011, it acquired Internormen Technology Group. In August 2011, it acquired IE Power, Inc. In December 2011, it acquired E.A. Pedersen Company.

About Flow International Corp

SPX FLOW, Inc. provides various engineered solutions worldwide. The company engineers, designs, manufactures, and markets products and solutions used to process, blend, filter, dry, meter, and transport fluids with a focus on original equipment installation, including turn-key systems, modular systems, and components, as well as aftermarket components and support services. It operates through three segments: Food and Beverage, Power and Energy, and Industrial. The Food and Beverage segment offers mixing, drying, evaporation, and separation systems and components; heat exchangers, and reciprocating and centrifugal pump technologies; and turn-key systems primarily under the Anhydro, APV, Bran+Luebbe, Gerstenberg Schroeder, LIGHTNIN, Seital, and Waukesha Cherry-Burrell brands. The Power and Energy segment provides pumps, valves, and related accessories primarily for customers in oil and gas, and nuclear and other conventional power industries under the APV, Bran+Luebbe, ClydeUnion Pumps, Copes-Vulcan, Dollinger Filtration, LIGHTNIN, M&J Valve, Plenty, and Vokes brands. The Industrial segment offers air dryers, filtration equipment, mixers, pumps, hydraulic technologies, and heat exchangers under the Airpel, APV, Bolting Systems, Delair, Deltech, Hankison, Jemaco, Johnson Pump, LIGHTNIN, Power Team, and Stone brands. It primarily serves customers in chemical, air treatment, mining, pharmaceutical, marine, shipbuilding, infrastructure construction, general industrial, and water treatment industries. SPX FLOW, Inc. is headquartered in Charlotte, North Carolina.

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