Contrasting Edgen Group (EDG) and SPX Flow (FLOW)

Edgen Group (NYSE: EDG) and SPX Flow (NYSE:FLOW) are both small-cap industrial machinery & equipment – nec companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Edgen Group and SPX Flow, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edgen Group 0 0 0 0 N/A
SPX Flow 2 1 3 0 2.17

SPX Flow has a consensus price target of $38.00, suggesting a potential downside of 19.42%. Given SPX Flow’s higher probable upside, analysts clearly believe SPX Flow is more favorable than Edgen Group.

Profitability

This table compares Edgen Group and SPX Flow’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edgen Group N/A N/A N/A
SPX Flow 1.17% 6.17% 1.90%

Insider & Institutional Ownership

85.8% of SPX Flow shares are owned by institutional investors. 3.0% of SPX Flow shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Edgen Group and SPX Flow’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Edgen Group N/A N/A N/A ($1.68) -0.04
SPX Flow $2.00 billion 1.00 -$381.80 million $0.53 88.98

Edgen Group has higher earnings, but lower revenue than SPX Flow. Edgen Group is trading at a lower price-to-earnings ratio than SPX Flow, indicating that it is currently the more affordable of the two stocks.

Summary

SPX Flow beats Edgen Group on 10 of the 10 factors compared between the two stocks.

About Edgen Group

Edgen Group Inc. (Edgen Group) is a holding company. The Company is a distributor of specialty products to the energy sector, including highly engineered steel pipe, valves, quenched and tempered and high yield heavy plate and related components. Its segments include Energy and Infrastructure Products (E&I) and Oil Country Tubular Goods (OCTG). The Company primarily serve customers that operate in the upstream (conventional and unconventional exploration, drilling and production of oil and natural gas in both onshore and offshore environments), midstream (gathering, processing, fractionation, transportation and storage of oil and natural gas) and downstream (refining and petrochemical applications) end markets for oil and natural gas. It also serves power generation, civil construction and mining applications. In December 2012, the Company, through its subsidiary acquired HSP Group Limited (HSP).

About SPX Flow

SPX FLOW, Inc. is a global supplier of engineered solutions. As of December 31, 2016, the Company had operations in over 30 countries and sales in over 150 countries around the world. The Company operates in three business segments: Food and Beverage, Power and Energy, and Industrial. Its product portfolio of pumps, valves, mixers, filters, air dryers, hydraulic tools, homogenizers, separators and heat exchangers, along with the related aftermarket parts and services, supports global industries, including food and beverage, oil and gas, power generation, chemical processing, compressed air and mining. The Food and Beverage segment’s products include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. Its products in the Power and Energy segment include pumps, valves and the related accessories. Its products in the Industrial segment are filtration equipment, hydraulic technologies and heat exchangers.

Receive News & Ratings for Edgen Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Edgen Group and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply