Critical Contrast: Xylem (NYSE:XYL) & Enovis (NYSE:ENOV)

Xylem (NYSE:XYLGet Rating) and Enovis (NYSE:ENOVGet Rating) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

83.8% of Xylem shares are owned by institutional investors. 0.9% of Xylem shares are owned by company insiders. Comparatively, 8.2% of Enovis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Xylem and Enovis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xylem 1 7 3 0 2.18
Enovis 0 0 0 0 N/A

Xylem currently has a consensus target price of $114.44, indicating a potential upside of 34.31%. Given Xylem’s higher possible upside, equities analysts clearly believe Xylem is more favorable than Enovis.

Risk and Volatility

Xylem has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Enovis has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.

Valuation & Earnings

This table compares Xylem and Enovis’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xylem $5.20 billion 2.95 $427.00 million $2.32 36.73
Enovis $3.85 billion 0.91 $71.66 million $1.38 47.05

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

Profitability

This table compares Xylem and Enovis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xylem 8.10% 13.80% 5.19%
Enovis 1.86% 7.41% 4.14%

Summary

Xylem beats Enovis on 10 of the 13 factors compared between the two stocks.

Xylem Company Profile (Get Rating)

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment offers various products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment under the Flygt, Godwin, Wedeco, Sanitaire, Leopold, Wedeco, and Xylem Vue brand names for the transportation and treatment of water. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue and Flojet brand names for residential and commercial building services, and industrial water applications. The Measurement & Control Solutions segment provides smart meters, networked communication devices, and measurement and control technologies, as well as critical infrastructure technologies. It also offers software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment and managed services. This segment sells its products under the Pure, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brand names. The company markets and sells its products through a network of direct sales force, resellers, distributors, and value-added solution providers. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. The company. was incorporated in 2011 and is headquartered in Rye Brook, New York.

Enovis Company Profile (Get Rating)

Enovis Corporation operates as a medical technology company worldwide. It develops, manufactures, and distributes medical device products used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events, and sports related injuries. It offers rigid and soft orthopedic bracings, hot and cold therapy products, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management, and physical therapy products; and a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger. Enovis Corporation sells its products through independent distributors, such as healthcare professionals, consumer retail stores, and pharmacies; and directly under the DJO brand. The company was formerly known as Colfax Corporation. Enovis Corporation is headquartered in Wilmington, Delaware.

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