Sensata Technologies (NYSE:ST) and Badger Meter (NYSE:BMI) Head-To-Head Survey

Sensata Technologies (NYSE:ST) and Badger Meter (NYSE:BMI) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sensata Technologies and Badger Meter, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	6	5	0	2.33
Badger Meter	0	3	3	0	2.50

Sensata Technologies currently has a consensus price target of $35.50, suggesting a potential upside of 13.30%. Badger Meter has a consensus price target of $237.20, suggesting a potential downside of 3.39%. Given Sensata Technologies’ higher probable upside, analysts clearly believe Sensata Technologies is more favorable than Badger Meter.

Profitability

This table compares Sensata Technologies and Badger Meter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensata Technologies	3.19%	17.12%	6.72%
Badger Meter	15.74%	22.35%	16.27%

Dividends

Sensata Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. Badger Meter pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Sensata Technologies pays out 59.3% of its earnings in the form of a dividend. Badger Meter pays out 30.0% 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. Badger Meter has increased its dividend for 32 consecutive years.

Volatility & Risk

Sensata Technologies has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Badger Meter has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sensata Technologies and Badger Meter”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensata Technologies	$3.93 billion	1.17	$128.48 million	$0.81	38.68
Badger Meter	$826.56 million	8.75	$124.94 million	$4.54	54.08

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

Insider and Institutional Ownership

99.4% of Sensata Technologies shares are owned by institutional investors. Comparatively, 89.0% of Badger Meter shares are owned by institutional investors. 0.9% of Sensata Technologies shares are owned by insiders. Comparatively, 0.9% of Badger Meter shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Badger Meter beats Sensata Technologies on 10 of the 17 factors compared between the two stocks.

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.

About Badger Meter

Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions worldwide. It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities market. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives. In addition, the company offers ORION Cellular endpoints to power network as a service; ORION mobile read endpoints support for deploying AMR solution; radio products; hardware, instruments, and sensors, and related software, to enhance connected data to a water utility's operation; water quality monitoring solutions, including optical sensing and electrochemical instruments; and high frequency pressure and leak detection sensors to aid in burst pipe and leak events; as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. The company serves water utilities, commercial, and industrial industries; and provides training, project management, technical support, and other collaborative services for customers. It sells its products and software directly, as well as through resellers and representatives. The company was incorporated in 1905 and is based in Milwaukee, Wisconsin.