A. O. Smith (NYSE:AOS) vs. Energous (NASDAQ:WATT) Financial Analysis

Energous (NASDAQ:WATT) and A. O. Smith (NYSE:AOS) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

4.3% of Energous shares are owned by institutional investors. Comparatively, 76.1% of A. O. Smith shares are owned by institutional investors. 0.1% of Energous shares are owned by insiders. Comparatively, 0.8% of A. O. Smith shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Energous has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares Energous and A. O. Smith’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energous	-1.40%	-282.11%	-148.62%
A. O. Smith	13.85%	29.34%	16.86%

Earnings & Valuation

This table compares Energous and A. O. Smith”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energous	$3.02 million	4.53	-$18.40 million	($18.13)	-0.35
A. O. Smith	$3.83 billion	2.37	$533.60 million	$3.71	17.58

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

Analyst Ratings

This is a summary of current recommendations and price targets for Energous and A. O. Smith, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energous	1	0	0	0	1.00
A. O. Smith	0	6	2	0	2.25

A. O. Smith has a consensus target price of $76.71, suggesting a potential upside of 17.64%. Given A. O. Smith’s stronger consensus rating and higher probable upside, analysts plainly believe A. O. Smith is more favorable than Energous.

Summary

A. O. Smith beats Energous on 13 of the 14 factors compared between the two stocks.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.