Financial Contrast: Pentair (PNR) vs. John Bean Technologies (JBT)

Pentair (NYSE: PNR) and John Bean Technologies (NYSE:JBT) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

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86.6% of Pentair shares are held by institutional investors. 10.7% of Pentair shares are held by company insiders. Comparatively, 2.2% of John Bean Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Pentair and John Bean Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pentair 4 7 3 0 1.93
John Bean Technologies 1 1 4 0 2.50

Pentair currently has a consensus target price of $71.27, indicating a potential upside of 4.69%. John Bean Technologies has a consensus target price of $108.33, indicating a potential downside of 2.45%. Given Pentair’s higher possible upside, equities analysts plainly believe Pentair is more favorable than John Bean Technologies.

Earnings and Valuation

This table compares Pentair and John Bean Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pentair $4.94 billion 2.51 $666.50 million $3.53 19.29
John Bean Technologies $1.64 billion 2.14 $80.50 million $3.10 35.82

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

Profitability

This table compares Pentair and John Bean Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pentair 13.50% 13.41% 6.86%
John Bean Technologies 4.92% 23.93% 7.31%

Risk & Volatility

Pentair has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, John Bean Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Dividends

Pentair pays an annual dividend of $1.40 per share and has a dividend yield of 2.1%. John Bean Technologies pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Pentair pays out 39.7% of its earnings in the form of a dividend. John Bean Technologies pays out 12.9% 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. Pentair has increased its dividend for 41 consecutive years. Pentair is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Pentair beats John Bean Technologies on 11 of the 17 factors compared between the two stocks.

About Pentair

Pentair plc operates as a diversified industrial manufacturing company in the United States, Europe, and internationally. The company operates through two segments, Water and Electrical. The Water segment designs, manufactures, and services products and solutions to meet filtration, separation, flow, and water management challenges in agriculture, aquaculture, foodservice, food and beverage processing, swimming pools, water supply and disposal, and various industrial applications. This segment serves wholesalers and retail distributors, end-users, engineering procurement contractors, and original equipment manufacturers under the Aurora, Berkeley, Codeline, Everpure, Fairbanks-Nijhuis, Kreepy Krauly, Haffmans, Hydromatic, Hypro, Pentair, Pentair Aquatic Eco-Systems, Sta-Rite, Shurflo, Südmo, and X-Flow brand names. The Electrical segment designs, manufactures, and services products that protect sensitive equipment and buildings; thermal management systems; and engineered fastening solutions. This segment serves commercial, communications, energy, electronics, infrastructure, medical, security, and defense industries under the CADDY, ERICO, Hoffman, LENTON, Raychem, Schroff, and Tracer brands. Pentair plc was founded in 1966 and is based in London, the United Kingdom.

About John Bean Technologies

John Bean Technologies Corporation (JBT) is a technology solutions provider to the segments of the food and beverage industry with focus on proteins, liquid foods and automated system solutions. It operates through two segments: JBT FoodTech and JBT AeroTech. The JBT FoodTech segment designs, manufactures and services technologically food processing systems used for fruit juice production, frozen food production, in-container food production, automated systems and convenience food preparation by the food industry. The product offerings of its FoodTech businesses include Protein, Liquid Foods and Automated Systems. The JBT AeroTech segment designs, manufactures and services technologically airport ground support and gate equipment and provides services for airport authorities; airlines, airfreight, and ground handling companies; the defense contractors, and other industries. The product offerings of its AeroTech businesses include Mobile Equipment, Fixed Equipment and Airport Services.

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