Badger Meter (BMI) & Exfo (EXFO) Head to Head Contrast

Exfo (NASDAQ: EXFO) and Badger Meter (NYSE:BMI) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares Exfo and Badger Meter’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exfo $243.30 million 0.99 $850,000.00 N/A N/A
Badger Meter $393.76 million 3.60 $32.29 million $1.15 42.35

Badger Meter has higher revenue and earnings than Exfo.

Analyst Recommendations

This is a breakdown of recent ratings for Exfo and Badger Meter, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exfo 0 4 1 0 2.20
Badger Meter 0 4 1 0 2.20

Exfo currently has a consensus target price of $5.35, indicating a potential upside of 21.59%. Badger Meter has a consensus target price of $48.50, indicating a potential downside of 0.41%. Given Exfo’s higher probable upside, equities analysts plainly believe Exfo is more favorable than Badger Meter.

Institutional and Insider Ownership

16.1% of Exfo shares are held by institutional investors. Comparatively, 82.9% of Badger Meter shares are held by institutional investors. 20.0% of Exfo shares are held by company insiders. Comparatively, 4.5% of Badger Meter shares are held 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.

Profitability

This table compares Exfo and Badger Meter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exfo 0.09% 5.22% 3.94%
Badger Meter 8.39% 12.62% 9.11%

Risk and Volatility

Exfo has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Badger Meter has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Dividends

Badger Meter pays an annual dividend of $0.52 per share and has a dividend yield of 1.1%. Exfo does not pay a dividend. Badger Meter pays out 45.2% of its earnings in the form of a dividend. Exfo has raised its dividend for 16 consecutive years.

Summary

Badger Meter beats Exfo on 9 of the 14 factors compared between the two stocks.

About Exfo

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

About Badger Meter

Badger Meter, Inc. is a manufacturer and marketer of products incorporating flow measurement, control and communication solutions, serving water utilities, municipalities, and commercial and industrial customers around the world. The Company’s products measure water, oil, chemicals and other fluids, provide and communicate timely measurement data. Its product lines include two categories: sales of water meters and related technologies to municipal water utilities (municipal water), and sales of meters to various industries for water and other fluids (flow instrumentation). The municipal water offering includes mechanical and ultrasonic (electronic) water meters and related technologies and services used by water utilities as the basis for generating water and wastewater. The flow instrumentation category includes the sale of meters and valves around the world to measure and control materials flowing through a pipe or pipeline, including air, steam, oil, and other liquids and gases.

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