Melrose Industries (OTCMKTS:MLSPF – Get Free Report) and Crane (NYSE:CR – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Insider and Institutional Ownership
47.0% of Melrose Industries shares are owned by institutional investors. Comparatively, 75.1% of Crane shares are owned by institutional investors. 2.4% of Crane shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Melrose Industries and Crane, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Melrose Industries | 0 | 0 | 0 | 0 | N/A |
Crane | 0 | 1 | 6 | 0 | 2.86 |
Earnings & Valuation
This table compares Melrose Industries and Crane”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Melrose Industries | N/A | N/A | N/A | $0.53 | 11.14 |
Crane | $2.21 billion | 4.11 | $401.10 million | $3.73 | 42.55 |
Crane has higher revenue and earnings than Melrose Industries. Melrose Industries is trading at a lower price-to-earnings ratio than Crane, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Melrose Industries and Crane’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Melrose Industries | N/A | N/A | N/A |
Crane | 13.10% | 24.45% | 10.14% |
Dividends
Melrose Industries pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. Crane pays an annual dividend of $0.82 per share and has a dividend yield of 0.5%. Melrose Industries pays out 15.6% of its earnings in the form of a dividend. Crane pays out 22.0% 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. Melrose Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Crane beats Melrose Industries on 10 of the 12 factors compared between the two stocks.
About Melrose Industries
Melrose Industries PLC, together with its subsidiaries, engages in the aerospace, automotive, powder metallurgy, and other industrial businesses in the United Kingdom, rest of Europe, North America, and internationally. Its Aerospace segment provides airframe and engine structures, and electrical interconnection systems for the aerospace industry in civil airframe and defense platforms. The company's Automotive segment designs, develops, manufactures, and integrates driveline technologies, including electric vehicle components. Its Powder Metallurgy segment offers precision powder metal parts for the automotive and industrial sectors; and metal powder for powder metallurgy, as well as commercializes additive manufacturing. The company's Other Industrial segment designs, manufactures, and distributes ergonomic products for use in a various working, learning, and healthcare environments; and offers metal hydride hydrogen storage solutions for use in a range of industrial and commercial applications. The company was formerly known as New Melrose Industries PLC and changed its name to Melrose Industries PLC in November 2015. Melrose Industries PLC was founded in 2003 and is headquartered in London, the United Kingdom.
About Crane
Crane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. The company operates in three segments: Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts for commercial aerospace, as well as the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for commercial aircraft and fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission-critical applications. It offers process valves and related products, such as lined pipe, fittings and hoses, air-operated diaphragm and peristaltic pumps, instrumentation and sampling systems, valve positioning and control systems, and valve diagnostic and calibration systems; commercial valves; and pumps and systems. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils for use in the manufacturing of recreational vehicles, as well as in commercial and industrial building applications. This segment sells directly to RV, trailer, and truck manufacturers, as well as through distributors and retailers. The company provides its products and solutions to end markets, including commercial and military aerospace, defense, and space; chemical and pharmaceutical production; water and wastewater; non-residential and municipal construction; energy; and other general industrial and consumer-related applications. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.
Receive News & Ratings for Melrose Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Melrose Industries and related companies with MarketBeat.com's FREE daily email newsletter.