Head to Head Analysis: Evoqua Water Technologies (NYSE:AQUA) & Tennant (NYSE:TNC)

Tennant (NYSE:TNC) and Evoqua Water Technologies (NYSE:AQUA) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Tennant and Evoqua Water Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tennant 3.77% 15.75% 4.98%
Evoqua Water Technologies -0.66% 8.53% 1.82%

Analyst Recommendations

This is a summary of current recommendations and price targets for Tennant and Evoqua Water Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tennant 0 0 2 0 3.00
Evoqua Water Technologies 0 4 1 1 2.50

Evoqua Water Technologies has a consensus price target of $16.50, indicating a potential downside of 11.19%. Given Evoqua Water Technologies’ higher probable upside, analysts plainly believe Evoqua Water Technologies is more favorable than Tennant.

Insider and Institutional Ownership

85.8% of Tennant shares are held by institutional investors. 5.6% of Tennant shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Tennant has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Evoqua Water Technologies has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Earnings and Valuation

This table compares Tennant and Evoqua Water Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tennant $1.12 billion 1.29 $33.41 million $2.18 36.34
Evoqua Water Technologies $1.44 billion 1.47 -$9.52 million $0.16 116.13

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

Summary

Tennant beats Evoqua Water Technologies on 9 of the 15 factors compared between the two stocks.

Tennant Company Profile

Tennant Company designs, manufactures, and markets floor cleaning equipment worldwide. The company offers a suite of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, specialty surface coatings, and asset management solutions. It also provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IRIS, VLX, Superior Anodes, Orbio, and IPC brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organization, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Minneapolis, Minnesota.

Evoqua Water Technologies Company Profile

Evoqua Water Technologies Corp. provides a range of water and wastewater treatment systems and technologies, and mobile and emergency water supply solutions and services. It operates in three segments: Industrial, Municipal, and Products. The Industrial segment offers capital systems and related recurring aftermarket services, parts, and consumables, as well as long-term and short-term service contracts, and emergency services for treating industrial process water, utility water, and wastewater. It serves customers in the hydrocarbon refineries, chemical processing, power, food and beverage, life sciences, health services, and microelectronics industries. The Municipal segment offers engineered solutions and equipment, including ultrafiltration systems, advanced biological treatment, clarifiers, aerators, and odor and corrosion control services; equipment for new municipal plant builds and retrofit; and rehabilitation and aftermarket parts and services for installed bases. Its customers comprise waste water and drinking water collection and distribution systems, and utility operators. The Products segment provides filtration and disinfection, electrodeionization and electrochlorination, and separation technologies, as well as anodes. It serves original equipment manufacturers, distributors, and end users in hotels, resorts, colleges, universities, waterparks, aquariums, and zoos, as well as the municipal, industrial, and commercial industries. The company has operations in the United States, Canada, the United Kingdom, the Netherlands, Germany, Australia, China, and Singapore. Evoqua Water Technologies Corp. was incorporated in 2013 and is headquartered in Pittsburgh, Pennsylvania.

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