Omega Flex (OFLX) versus Watts Water Technologies (WTS) Head to Head Survey

Omega Flex (NASDAQ: OFLX) and Watts Water Technologies (NYSE:WTS) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Volatility & Risk

Omega Flex has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Watts Water Technologies has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Valuation and Earnings

This table compares Omega Flex and Watts Water Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Omega Flex $101.80 million 5.94 $15.66 million $1.52 39.45
Watts Water Technologies $1.46 billion 1.82 $73.10 million $2.12 36.72

Watts Water Technologies has higher revenue and earnings than Omega Flex. Watts Water Technologies is trading at a lower price-to-earnings ratio than Omega Flex, indicating that it is currently the more affordable of the two stocks.

Dividends

Omega Flex pays an annual dividend of $0.88 per share and has a dividend yield of 1.5%. Watts Water Technologies pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Omega Flex pays out 57.9% of its earnings in the form of a dividend. Watts Water Technologies pays out 35.8% 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. Watts Water Technologies has raised its dividend for 5 consecutive years.

Institutional & Insider Ownership

25.1% of Omega Flex shares are held by institutional investors. Comparatively, 77.2% of Watts Water Technologies shares are held by institutional investors. 44.9% of Omega Flex shares are held by insiders. Comparatively, 1.1% of Watts Water Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Omega Flex and Watts Water Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Omega Flex 0 0 0 0 N/A
Watts Water Technologies 0 6 4 0 2.40

Watts Water Technologies has a consensus target price of $76.80, suggesting a potential downside of 1.35%. Given Watts Water Technologies’ higher probable upside, analysts clearly believe Watts Water Technologies is more favorable than Omega Flex.

Profitability

This table compares Omega Flex and Watts Water Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Omega Flex 15.39% 30.21% 23.14%
Watts Water Technologies 5.02% 12.93% 6.02%

Summary

Watts Water Technologies beats Omega Flex on 9 of the 16 factors compared between the two stocks.

Omega Flex Company Profile

Omega Flex, Inc. is a manufacturer of flexible metal hose. The Company is engaged in a range of different markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical and other industries. It operates through manufacture and sale of flexible metal hose and accessories segment. Its products are concentrated in residential and commercial construction, and general industrial markets. Its primary product, flexible gas piping, is used for gas piping within residential and commercial buildings. Its TracPipe and TracPipe CounterStrike flexible gas piping, along with its fittings, which are distributed under AutoSnap and AutoFlare names. Its products are manufactured at its Exton, Pennsylvania facilities in the United States, and in Banbury, Oxfordshire in the United Kingdom. It has sales across all industries are generated through independent outside sales organizations, such as sales representatives, wholesalers and distributors or a combination of both.

Watts Water Technologies Company Profile

Watts Water Technologies, Inc. is a supplier of products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The Company, through its subsidiary, Watts Regulator Co., is engaged in manufacturing products and systems focused on the control, conservation and quality of water, and safety of the people using it. Its segments include Americas, Middle East and Africa and Asia-Pacific. It four product lines include: residential and commercial flow control products, which include products for plumbing and hot water applications; heating, ventilation and air conditioning and gas products, which include boilers, water heaters and heating solutions; drainage and water re-use products, which include drainage products and engineered rain water harvesting solutions, and water quality products, which include point-of-use and point-of-entry water filtration, conditioning and scale prevention systems.

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