Comparing Gardner Denver (GDI) and Rexnord (RXN)

Gardner Denver (NYSE: GDI) and Rexnord (NYSE:RXN) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

This table compares Gardner Denver and Rexnord’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gardner Denver $2.38 billion 2.79 $18.40 million $0.10 334.40
Rexnord $1.92 billion 1.57 $74.10 million $1.32 21.98



Rexnord has lower revenue, but higher earnings than Gardner Denver. Rexnord is trading at a lower price-to-earnings ratio than Gardner Denver, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.8% of Gardner Denver shares are owned by institutional investors. 1.7% of Gardner Denver shares are owned by company insiders. Comparatively, 3.5% of Rexnord shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Gardner Denver and Rexnord, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gardner Denver 0 3 10 0 2.77
Rexnord 0 1 7 0 2.88

Gardner Denver currently has a consensus target price of $33.00, suggesting a potential downside of 1.32%. Rexnord has a consensus target price of $30.50, suggesting a potential upside of 5.14%. Given Rexnord’s stronger consensus rating and higher probable upside, analysts plainly believe Rexnord is more favorable than Gardner Denver.

Profitability

This table compares Gardner Denver and Rexnord’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gardner Denver 2.70% 17.57% 5.28%
Rexnord 8.29% 13.05% 4.27%

Summary

Gardner Denver beats Rexnord on 7 of the 13 factors compared between the two stocks.

Gardner Denver Company Profile

Gardner Denver Holdings, Inc. provides mission-critical flow control and compression equipment; and associated aftermarket parts, consumables, and services in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Industrials, Energy, and Medical. The Industrials segment designs, manufactures, markets, and services a range of air compression, vacuum, and blower products, as well as offers associated aftermarket parts, consumables, and services. Its products are used in process-critical applications, such as the operation of industrial air tools, vacuum packaging of food products, aeration of waste water, and others. This segment sells its products through an integrated network of direct sales representatives and independent distributors under the Gardner Denver, CompAir, Elmo Rietschle, Robuschi, and other brand names. The Energy segment engages in the design, manufacture, marketing, and service of a range of displacement and liquid ring vacuum pumps, compressors and integrated systems, and engineered fluid loading and transfer equipment, as well as offers associated aftermarket parts, consumables, and services under the Gardner Denver, Nash, Emco Wheaton, and other brands. It serves customers in upstream, midstream, and downstream energy markets, as well as petrochemical processing, transportation, and general industrial sectors. The Medical segment designs, manufactures, and markets a range of specialized gas, liquid, and precision syringe pumps and compressors for use in oxygen therapy, blood dialysis, patient monitoring, laboratory sterilization and wound treatment, and other applications. This segment sells its products under the Thomas and other brands. Gardner Denver Holdings, Inc. was founded in 1859 and is headquartered in Milwaukee, Wisconsin.

Rexnord Company Profile

Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. The company operates in two segments, Process & Motion Control Platform and Water Management Platform. It offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chains, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, such as couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies. The company also provides valve products, engineered water distribution solutions, drainage products, and site works products; water conservation products; and water and wastewater infrastructure products. It sells products through independent sales representatives, plumbing wholesalers, sales agencies, and direct sales and marketing associates to commercial construction, institutional, infrastructure, and residential construction end markets. The company offers its products under the Rexnord, Rex, FlatTop, Falk, Link-Belt Cambridge, Addax, Euroflex, Omega, PSI, Shafer, Stearns, Highfield, Thomas, Tollok, Zurn, Wilkins, GA, Green Turtle, VAG, Aquaflush, AquaSense, AquaVantage, AquaSpec, EcoVantage, and Zurn One brands. Rexnord Corporation was incorporated in 2006 and is based in Milwaukee, Wisconsin.

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