Reviewing Rexnord (RXN) and Edgen Group (EDG)

Rexnord (NYSE: RXN) and Edgen Group (NYSE:EDG) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Rexnord 8.29% 13.05% 4.27%
Edgen Group N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rexnord and Edgen Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rexnord 0 1 6 0 2.86
Edgen Group 0 0 0 0 N/A

Rexnord currently has a consensus price target of $30.50, suggesting a potential upside of 9.08%. Given Rexnord’s higher possible upside, analysts plainly believe Rexnord is more favorable than Edgen Group.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rexnord $1.92 billion 1.52 $74.10 million $0.80 34.95
Edgen Group N/A N/A N/A ($1.68) -7.14

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

Summary

Rexnord beats Edgen Group on 8 of the 8 factors compared between the two stocks.

About Rexnord

Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.

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).

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