Woodward (NASDAQ: WWD) and Welbilt (NYSE:WBT) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Institutional and Insider Ownership
72.1% of Woodward shares are owned by institutional investors. Comparatively, 91.1% of Welbilt shares are owned by institutional investors. 6.2% of Woodward shares are owned by company insiders. Comparatively, 0.7% of Welbilt shares are owned 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.
Volatility and Risk
Woodward has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Welbilt has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.
This is a summary of current recommendations for Woodward and Welbilt, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Woodward currently has a consensus target price of $77.71, suggesting a potential upside of 0.46%. Welbilt has a consensus target price of $23.40, suggesting a potential upside of 1.25%. Given Welbilt’s stronger consensus rating and higher possible upside, analysts clearly believe Welbilt is more favorable than Woodward.
This table compares Woodward and Welbilt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Woodward and Welbilt’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Woodward||$2.10 billion||2.26||$200.50 million||$3.16||24.48|
|Welbilt||$1.46 billion||2.21||$79.50 million||$0.64||36.11|
Woodward has higher revenue and earnings than Welbilt. Woodward is trading at a lower price-to-earnings ratio than Welbilt, indicating that it is currently the more affordable of the two stocks.
Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Welbilt does not pay a dividend. Woodward pays out 15.8% of its earnings in the form of a dividend.
Woodward beats Welbilt on 9 of the 15 factors compared between the two stocks.
Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.
Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.
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