Reviewing Edgen Group (NYSE:EDG) & Rexnord (RXN)

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

Analyst Recommendations

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

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

Rexnord has a consensus target price of $30.50, suggesting a potential upside of 1.26%. Given Rexnord’s higher probable upside, analysts plainly believe Rexnord is more favorable than Edgen Group.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Edgen Group N/A N/A N/A ($1.68) -0.04
Rexnord $1.92 billion 1.63 $74.10 million $0.83 36.29

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.


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

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

Insider and Institutional Ownership

99.8% of Rexnord shares are held by institutional investors. 3.5% of Rexnord shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.


Rexnord beats Edgen Group on 10 of the 10 factors compared between the two stocks.

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).

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.

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