Critical Review: Pentair (NYSE:PNR) versus Trans Global Group (OTCMKTS:TGGI)

Pentair (NYSE:PNR) and Trans Global Group (OTCMKTS:TGGI) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Pentair and Trans Global Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pentair	14.86%	21.62%	11.88%
Trans Global Group	N/A	N/A	N/A

Institutional and Insider Ownership

92.4% of Pentair shares are owned by institutional investors. 1.5% of Pentair shares are owned by company insiders. Comparatively, 61.4% of Trans Global Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pentair and Trans Global Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pentair	1	3	11	2	2.82
Trans Global Group	0	0	0	0	0.00

Pentair presently has a consensus price target of $116.50, suggesting a potential upside of 6.58%. Given Pentair’s stronger consensus rating and higher probable upside, analysts plainly believe Pentair is more favorable than Trans Global Group.

Earnings & Valuation

This table compares Pentair and Trans Global Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pentair	$4.08 billion	4.39	$625.40 million	$3.66	29.87
Trans Global Group	N/A	N/A	N/A	N/A	N/A

Pentair has higher revenue and earnings than Trans Global Group.

Volatility & Risk

Pentair has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Trans Global Group has a beta of -2.27, meaning that its stock price is 327% less volatile than the S&P 500.

Summary

Pentair beats Trans Global Group on 10 of the 11 factors compared between the two stocks.

About Pentair

Pentair plc provides various water solutions in the United States, Western Europe, China, Eastern Europe, Latin America, the Middle East, Southeast Asia, Australia, Canada, and Japan. The company operates through three segments: Flow, Water Solutions, and Pool. The Flow segment designs, manufactures, and sells fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles for fluid delivery, ion exchange, desalination, food and beverage, separation technologies in the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and transfer, fire suppression, flood control, agricultural irrigation, and crop spray in residential, commercial, and industrial markets. The Water Solutions segment provides commercial and residential water treatment products and systems, including pressure tanks, control valves, activated carbon products, commercial ice machines, conventional filtration products, and point-of-entry and point-of-use water treatment systems, as well as installation and preventative services for use in residential whole home water filtration, drinking water filtration, and water softening solutions, as well as commercial total water management and filtration in foodservice operations. The Pool segment provides residential and commercial pool equipment and accessories comprising pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories for applications in residential and commercial pool maintenance, pool repair, renovation, service, and construction and aquaculture solutions. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.

About Trans Global Group

Trans Global Group Inc., through its subsidiary, Shenzhen Zui Xian Gui Brewery Technology Limited, distributes and retails wine under the Zui Xian Gui name in the People's Republic of China. It also sells its products through an online self-operated retail and e-commerce platform. The company is headquartered in Shenzhen, China.