Cricut (NASDAQ:CRCT) & Crane NXT (NYSE:CXT) Financial Contrast

Crane NXT (NYSE:CXT) and Cricut (NASDAQ:CRCT) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider and Institutional Ownership

77.5% of Crane NXT shares are owned by institutional investors. Comparatively, 19.6% of Cricut shares are owned by institutional investors. 0.6% of Crane NXT shares are owned by company insiders. Comparatively, 18.0% of Cricut shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Crane NXT has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Cricut has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Earnings & Valuation

This table compares Crane NXT and Cricut”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crane NXT	$1.49 billion	2.10	$184.10 million	$2.91	18.73
Cricut	$712.54 million	1.99	$62.83 million	$0.31	21.65

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

Analyst Ratings

This is a summary of recent recommendations for Crane NXT and Cricut, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crane NXT	0	3	2	1	2.67
Cricut	2	1	0	0	1.33

Crane NXT currently has a consensus target price of $73.75, indicating a potential upside of 35.32%. Cricut has a consensus target price of $4.52, indicating a potential downside of 32.69%. Given Crane NXT’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Crane NXT is more favorable than Cricut.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crane NXT	11.17%	21.58%	9.50%
Cricut	9.48%	14.27%	9.65%

Dividends

Crane NXT pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Cricut pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Crane NXT pays out 23.4% of its earnings in the form of a dividend. Cricut pays out 64.5% 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 NXT has raised its dividend for 2 consecutive years.

Summary

Crane NXT beats Cricut on 14 of the 18 factors compared between the two stocks.

About Crane NXT

Crane NXT, Co. operates as an industrial technology company that provides technology solutions to secure, detect, and authenticate customers’ important assets. The company operates through Crane Payment Innovations and Crane Currency segments. The Crane Payment Innovations segment offers electronic equipment and associated software, as well as advanced automation solutions, processing systems, field service solutions, remote diagnostics, and productivity software solutions. The Crane Currency segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, and industrial products. Crane NXT, Co. was incorporated in 2021 and is based in Waltham, Massachusetts.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.