EnerSys (ENS) and Anixter (AXE) Head-To-Head Survey

EnerSys (NYSE: ENS) and Anixter (NYSE:AXE) are both mid-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider and Institutional Ownership

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97.2% of EnerSys shares are held by institutional investors. Comparatively, 92.6% of Anixter shares are held by institutional investors. 1.4% of EnerSys shares are held by company insiders. Comparatively, 14.7% of Anixter shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

EnerSys pays an annual dividend of $0.70 per share and has a dividend yield of 1.0%. Anixter does not pay a dividend. EnerSys pays out 14.7% of its earnings in the form of a dividend.

Volatility & Risk

EnerSys has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Anixter has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Profitability

This table compares EnerSys and Anixter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnerSys 3.94% 18.02% 8.49%
Anixter 1.38% 12.39% 4.18%

Analyst Ratings

This is a breakdown of recent ratings and price targets for EnerSys and Anixter, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnerSys 0 1 2 0 2.67
Anixter 0 2 1 0 2.33

EnerSys presently has a consensus price target of $78.00, indicating a potential upside of 12.00%. Anixter has a consensus price target of $88.00, indicating a potential upside of 14.29%. Given Anixter’s higher probable upside, analysts clearly believe Anixter is more favorable than EnerSys.

Valuation and Earnings

This table compares EnerSys and Anixter’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnerSys $2.37 billion 1.23 $160.21 million $4.75 14.66
Anixter $7.93 billion 0.32 $109.00 million $5.16 14.92

EnerSys has higher earnings, but lower revenue than Anixter. EnerSys is trading at a lower price-to-earnings ratio than Anixter, indicating that it is currently the more affordable of the two stocks.

Summary

EnerSys beats Anixter on 9 of the 16 factors compared between the two stocks.

EnerSys Company Profile

EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries. Its segments based on geographic regions consist of Americas, which consists of North and South America; EMEA, which includes Europe, the Middle East and Africa, and Asia, which includes Asia, Australia and Oceania. The Company’s product lines include reserve power and motive power products. Its Reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries. The Company’s motive power products are used to provide power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications. They are used as mining equipment, diesel locomotive starting and other rail equipment.

Anixter Company Profile

Anixter International Inc., through its subsidiary, Anixter Inc., distributes enterprise cabling and security solutions, electrical and electronic wire and cable products, and utility power solutions. Its Network & Security Solutions segment offers copper and fiber optic cable and connectivity, access control, video surveillance, intrusion and fire/life safety, cabinet, power, cable management, wireless, professional audio/video, voice and networking switche, and other ancillary products for technology, finance, telecommunications service provider, transportation, education, government, healthcare, and retail industries. The company's Electrical & Electronic Solutions segment provides electrical and electronic wires and cables, shipboard cables, support and supply products, low-voltage and instrumentation cables, industrial communication and control products, security cables, connectors, industrial Ethernet switches, and voice and data cables to the commercial and industrial, and original equipment manufacturer markets. Its Utility Power Solutions segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products, as well as arranges materials management and procurement outsourcing for the power generation and electricity distribution industries. The company serves contractors, installers, system integrators, value-added resellers, architects, engineers, and wholesale distributors in the manufacturing, resource extraction, Internet service provider, and utility industries, as well as defense customers. It distributes its products primarily in North America, Europe, the Middle East, Africa, the Asia Pacific, and Central and Latin America. The company was formerly known as Itel Corporation. Anixter International Inc. was founded in 1957 and is headquartered in Glenview, Illinois.

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