Head-To-Head Analysis: GigaCloud Technology (NASDAQ:GCT) and SPX Technologies (NYSE:SPXC)

SPX Technologies (NYSE:SPXC) and GigaCloud Technology (NASDAQ:GCT) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

92.8% of SPX Technologies shares are held by institutional investors. Comparatively, 34.9% of GigaCloud Technology shares are held by institutional investors. 3.3% of SPX Technologies shares are held by insiders. Comparatively, 24.7% of GigaCloud Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

SPX Technologies has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, GigaCloud Technology has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500.

Profitability

This table compares SPX Technologies and GigaCloud Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPX Technologies	10.27%	19.59%	9.36%
GigaCloud Technology	10.62%	30.43%	11.89%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SPX Technologies and GigaCloud Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPX Technologies	0	3	7	0	2.70
GigaCloud Technology	0	3	1	1	2.60

SPX Technologies presently has a consensus price target of $205.22, suggesting a potential downside of 6.31%. GigaCloud Technology has a consensus price target of $24.00, suggesting a potential downside of 25.28%. Given SPX Technologies’ stronger consensus rating and higher possible upside, equities analysts plainly believe SPX Technologies is more favorable than GigaCloud Technology.

Valuation and Earnings

This table compares SPX Technologies and GigaCloud Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPX Technologies	$2.16 billion	5.05	$200.50 million	$4.67	46.90
GigaCloud Technology	$1.16 billion	1.04	$125.81 million	$3.34	9.62

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

Summary

SPX Technologies beats GigaCloud Technology on 9 of the 15 factors compared between the two stocks.

About SPX Technologies

SPX Technologies, Inc. supplies infrastructure equipment serving the heating, ventilation, and cooling (HVAC); and detection and measurement markets worldwide. The company operates in two segments, HVAC and Detection and Measurement. The HVAC segment engineers, designs, manufactures, installs, and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as boilers, heating, and ventilation products for the residential and commercial markets. It offers its products under the Marley, Recold, SGS, Cincinnati Fan, TAMCO, Ingénia, Berko, Qmark, Fahrenheat, Leading Edge, Patterson-Kelley, Weil-McLain, Williamson-Thermoflo, INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, and Solar Products brands. The Detection and Measurement segment offers underground pipe and cable locators, inspection and rehabilitation equipment, and robotic systems under the Radiodetection, Pearpoint, Schonstedt, Dielectric, Riser Bond, Cues, ULC Robotics, and Sensors & Software brands; transportation systems under the Genfare brand; communication technologies products under the TCI and ECS brands; and obstruction lighting products under the Flash Technology, ITL, Sabik Marine, Sealite, and Avlite brands. The company markets its products through independent manufacturing representatives, third-party distributors, and retailers, as well as direct to customers. The company was formerly known as SPX Corporation and changed its name to SPX Technologies, Inc. in August 2022. SPX Technologies, Inc. was founded in 1912 and is headquartered in Charlotte, North Carolina.

About GigaCloud Technology

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. The company offers GigaCloud Marketplace integrates product discovery to payments to logistics tools into one easy-to-use platform. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.