Critical Contrast: Middleby (MIDD) vs. Standex International (SXI)

Middleby (NASDAQ: MIDD) and Standex International (NYSE:SXI) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

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87.9% of Standex International shares are held by institutional investors. 1.9% of Middleby shares are held by insiders. Comparatively, 1.7% of Standex International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Middleby and Standex International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Middleby 12.77% 22.98% 9.87%
Standex International 3.99% 14.98% 7.01%

Dividends

Standex International pays an annual dividend of $0.72 per share and has a dividend yield of 0.7%. Middleby does not pay a dividend. Standex International pays out 15.8% of its earnings in the form of a dividend. Standex International has increased its dividend for 8 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Middleby and Standex International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Middleby 0 4 4 0 2.50
Standex International 0 1 4 0 2.80

Middleby currently has a consensus target price of $138.71, suggesting a potential upside of 9.68%. Standex International has a consensus target price of $118.67, suggesting a potential upside of 17.43%. Given Standex International’s stronger consensus rating and higher probable upside, analysts clearly believe Standex International is more favorable than Middleby.

Risk and Volatility

Middleby has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Standex International has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Earnings and Valuation

This table compares Middleby and Standex International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Middleby $2.34 billion 3.02 $298.12 million $6.16 20.53
Standex International $755.26 million 1.72 $46.54 million $4.55 22.21

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

Summary

Middleby beats Standex International on 10 of the 16 factors compared between the two stocks.

About Middleby

The Middleby Corporation designs, manufactures, markets, distributes, and services foodservice, food processing, and residential kitchen equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America. Its Commercial Foodservice Equipment Group segment offers cooking and warming equipment for quick and full-service restaurants, convenience stores, retail outlets, hotels, and other institutions. This segment provides conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, rethermalizers, heated cabinets, charbroilers, ventless cooking systems, kitchen ventilations, toasters, griddles, mixers, refrigerators, blast chillers, coldrooms, ice machines, and freezers; steam cooking, food warming, catering, induction and countertop cooking, and coffee and beverage dispensing equipment; and stainless steel fabrication and custom millwork products. The company's Food Processing Equipment Group segment offers processing solutions for customers producing hot dog, dinner sausage, poultry, and lunchmeat, as well as muffin, cookie, and bread products. This segment provides batch, baking, proofing, conveyor, and continuous processing ovens; frying and automated thermal processing systems; grinders, slicers, reduction and emulsion systems, mixers, blenders, water cutting systems, food presses, and automated loading and unloading systems; and various battering and breading, seeding, food suspension and forming, food safety and handling, freezing, defrosting, and packaging equipment. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising ranges, cookers, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, wine coolers, ice machines, and ventilation and outdoor equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The Middleby Corporation was founded in 1888 and is based in Elgin, Illinois.

About Standex International

Standex International Corporation manufactures and sells various products and services for commercial and industrial markets in the United States and internationally. The company's Food Service Equipment segment offers refrigerated cabinets, cases, display units, coolers and freezers, ovens, char broilers, ranges, griddles, toasters, warmers, roller grills, countertop merchandisers, cook and hold units, rotisseries, pressure fryers, deep fryers, baking equipment, pump systems, and display cases. Its Engraving segment provides mold texturizing and slush molding tools; and roll engraving, hygiene product tooling, low observation vents for stealth aircraft, and process machineries, as well as project management and design services. It serves automotive, plastic, building product, synthetic material, converting, textile and paper, computer, houseware, hygiene product tooling, and aerospace industries. The company's Engineering Technologies segment offers customized solutions used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and space markets. Its Electronics segment offers electronic components, including reed relays, fluid level sensors, and electronic assemblies; and wound transformers and inductors, assemblies, and mechanical packaging and planar transformers for the transportation, smart-grid, energy, appliance, HVAC, security, military, medical, aerospace, test and measurement, power distribution, and general industrial applications. The company's Hydraulics segment offers telescopic and piston rod hydraulic cylinders, and pneumatic cylinders for use in construction equipment, refuse, airline support, mining, oil and gas, and other material handling applications. Standex International Corporation sells its products through dealers and industry representatives. The company was founded in 1955 and is headquartered in Salem, New Hampshire.

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