Weir Group (OTCMKTS:WEGRY) versus ChampionX (NASDAQ:CHX) Critical Survey

Weir Group (OTCMKTS:WEGRY) and ChampionX (NASDAQ:CHX) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

Weir Group has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, ChampionX has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Institutional and Insider Ownership

99.0% of ChampionX shares are owned by institutional investors. 1.5% of ChampionX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Weir Group and ChampionX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weir Group	$3.20 billion	N/A	$398.97 million	N/A	N/A
ChampionX	$3.63 billion	1.38	$320.27 million	$1.51	17.31

Weir Group has higher earnings, but lower revenue than ChampionX.

Profitability

This table compares Weir Group and ChampionX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weir Group	N/A	N/A	N/A
ChampionX	8.20%	19.25%	10.25%

Dividends

Weir Group pays an annual dividend of $0.26 per share and has a dividend yield of 1.5%. ChampionX pays an annual dividend of $0.38 per share and has a dividend yield of 1.5%. ChampionX pays out 25.2% of its earnings in the form of a dividend. ChampionX has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Weir Group and ChampionX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weir Group	0	1	1	3	3.40
ChampionX	0	1	2	0	2.67

ChampionX has a consensus price target of $37.67, indicating a potential upside of 44.12%. Given ChampionX’s higher probable upside, analysts plainly believe ChampionX is more favorable than Weir Group.

Summary

ChampionX beats Weir Group on 10 of the 15 factors compared between the two stocks.

About Weir Group

The Weir Group PLC produces and sells highly engineered original equipment worldwide. It operates in two segments, Minerals and ESCO. The Minerals segment offers engineering, manufacturing, and service processing technology for the use in abrasive high-wear mining applications; and differentiated technology for the use in infrastructure and general industrial markets. The ESCO segment provides ground engaging tools for large mining machines. This segment also offers cloud-based Artificial Intelligence solutions to the mining industry; manufactures and distributes highly engineered wear parts; and offers aftermarket services to the mining industry. The company offers its products under the Accumin, All-Cast, Aspir, Bucyrus Blades, Carbide Plus, Cavex, Delta Industrial, Enduron, ESCO, EverSharp, GEHO, GeoVor, Infinity, Isogate, Kwik-Lok, Lewis, Linacure, Linagard, Linard, Linatex, Loadmaster, MaxTemp, Motion Metrics, Multiflo, Nemisys, Posilok, Production Master, ProFill, Sand,aster, Super V, SV2, Synertrex, TopLock, Trio, UltraEdge, Ultrlok, Uni-Lok, Vulco, Warman, and Whisler Plus brands. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.

About ChampionX

ChampionX Corporation provides chemistry solutions, artificial lift systems, and engineered equipment and technologies to oil and gas companies worldwide. The company operates through four segments: Production Chemical Technologies, Production & Automation Technologies, Drilling Technologies, and Reservoir Chemical Technologies. The Production Chemical Technologies segment offers onshore, offshore, and oil sands chemical solutions, such as corrosion inhibitors, scale inhibitors, emulsion breakers, and biocides to oil and natural gas production and midstream markets to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment, and water-related issues. The Production & Automation Technologies segment provides artificial lift equipment, end-to-end digital automation solutions, and other production equipment and emissions monitoring solutions, including electrical submersible pumping systems, gas lift systems, jet pumps, multiplex surface pumps, plunger lift equipment, progressive cavity pumping systems, downhole rod lift systems, methane emissions monitoring solutions, chemical injection systems, flow control valves, and gauges under the Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, and Windrock brands. The Drilling Technologies segment offers polycrystalline diamond cutter inserts, bearings, valves, nozzles, and mining tools used in oil and gas drill bits under the US Synthetic brand; and high-density ceramic roof bolt mining tools for underground mining operations. The Reservoir Chemical Technologies segment provides chemistry-oriented solutions and technologies for well drilling, cementing, fracturing, acidizing, and other well interventions, as well as fracturing, drilling, cementing, acidizing additives. The company was founded in 1882 and is headquartered in The Woodlands, Texas.