Barnes Group (NYSE: B) and Watts Water Technologies (NYSE:WTS) are both mid-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
This table compares Barnes Group and Watts Water Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Watts Water Technologies||5.35%||13.26%||6.41%|
Barnes Group has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Watts Water Technologies has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Institutional & Insider Ownership
88.9% of Barnes Group shares are held by institutional investors. Comparatively, 77.4% of Watts Water Technologies shares are held by institutional investors. 7.9% of Barnes Group shares are held by company insiders. Comparatively, 1.1% of Watts Water Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Barnes Group and Watts Water Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Watts Water Technologies||0||6||3||0||2.33|
Barnes Group presently has a consensus target price of $67.00, suggesting a potential upside of 13.81%. Watts Water Technologies has a consensus target price of $79.50, suggesting a potential upside of 3.72%. Given Barnes Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Barnes Group is more favorable than Watts Water Technologies.
Earnings & Valuation
This table compares Barnes Group and Watts Water Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barnes Group||$1.44 billion||2.16||$59.41 million||$2.88||20.44|
|Watts Water Technologies||$1.46 billion||1.79||$73.10 million||$3.02||25.38|
Watts Water Technologies has higher revenue and earnings than Barnes Group. Barnes Group is trading at a lower price-to-earnings ratio than Watts Water Technologies, indicating that it is currently the more affordable of the two stocks.
Barnes Group pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. Watts Water Technologies pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Barnes Group pays out 19.4% of its earnings in the form of a dividend. Watts Water Technologies pays out 25.2% 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. Barnes Group has increased its dividend for 5 consecutive years and Watts Water Technologies has increased its dividend for 5 consecutive years.
Barnes Group beats Watts Water Technologies on 8 of the 15 factors compared between the two stocks.
About Barnes Group
Barnes Group Inc. operates as an industrial and aerospace manufacturer, and service provider in the United States and internationally. Its Industrial segment offers precision components, products, and systems for applications serving various customers in end-markets, such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices, and energy. This segment also manufactures and supplies precision mechanical products, including mechanical springs, high-precision punched and fine-blanked components, and retention rings; force and motion solutions for sheet metal forming, heavy duty suspension, and other markets; and hot runner systems, mold cavity sensors and process control systems, and precision high cavitation mold for injection molding applications. The company's Aerospace segment produces fabricated and precision-machined components and assemblies for original equipment manufacturer turbine engine, airframe, and industrial gas turbine builders, as well as for the military. It also offers maintenance, repair, and overhaul services for jet engine components to turbine engine manufacturers, commercial airlines, and the military. In addition, this segment manufactures aerospace aftermarket spare parts. The company sells its products primarily through its direct sales force and distribution channels. Barnes Group Inc. was founded in 1857 and is headquartered in Bristol, Connecticut.
About Watts Water Technologies
Watts Water Technologies, Inc. designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. It offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. The company also provides heating, ventilation, and air conditioning and gas products comprising boilers, water heaters, and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, it offers drainage and water re-use products consisting of drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products, such as point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, and do-it-yourself (DIY) chains; and directly to wholesalers and private label accounts. It operates in the Americas, Europe, the Middle East and Africa, and the Asia-Pacific. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.
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