Contrasting SPX Flow (FLOW) and CLARCOR (CLC)

SPX Flow (NYSE: FLOW) and CLARCOR (NYSE:CLC) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

86.7% of SPX Flow shares are owned by institutional investors. Comparatively, 86.9% of CLARCOR shares are owned by institutional investors. 3.0% of SPX Flow shares are owned by company insiders. Comparatively, 3.0% of CLARCOR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SPX Flow and CLARCOR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPX Flow 2 2 4 0 2.25
CLARCOR 0 0 0 0 N/A

SPX Flow currently has a consensus target price of $48.80, indicating a potential upside of 4.18%. Given SPX Flow’s higher probable upside, research analysts clearly believe SPX Flow is more favorable than CLARCOR.

Valuation and Earnings

This table compares SPX Flow and CLARCOR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SPX Flow $1.95 billion 1.02 $46.40 million $1.08 43.37
CLARCOR N/A N/A N/A $2.84 29.23

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

Profitability

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

Net Margins Return on Equity Return on Assets
SPX Flow 2.38% 6.13% 2.00%
CLARCOR 7.71% 10.16% 6.66%

Dividends

CLARCOR pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. SPX Flow does not pay a dividend. CLARCOR pays out 35.2% of its earnings in the form of a dividend. SPX Flow has increased its dividend for 53 consecutive years.

Summary

SPX Flow beats CLARCOR on 7 of the 13 factors compared between the two stocks.

SPX Flow Company Profile

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.

CLARCOR Company Profile

CLARCOR Inc. is engaged in providing filtration products, filtration systems and services, and consumer and industrial packaging products. The Company’s segments are Engine/Mobile Filtration and Industrial/Environmental Filtration. Its Engine/Mobile Filtration segment manufactures and sells filtration products for on-road and off-road mobile and stationary applications. Its Industrial/Environmental Filtration segment manufactures and sells filtration products used in industrial and commercial processes, and in buildings and infrastructures of various types. Its liquid process filtration products include specialty industrial process liquid filters; filters for pharmaceutical processes and beverages; filtration systems, filters and coalescers for the oil and natural gas industry; filtration systems for aircraft refueling, anti-pollution, sewage treatment and water recycling; bilge water separators, and sand control filters for oil and gas drilling.

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