Analyzing Universal Detection Technology (OTCMKTS:UNDT) & Donaldson (NYSE:DCI)

Universal Detection Technology (OTCMKTS:UNDT) and Donaldson (NYSE:DCI) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Valuation & Earnings

This table compares Universal Detection Technology and Donaldson”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Detection Technology	N/A	N/A	N/A	N/A	N/A
Donaldson	$3.69 billion	2.77	$367.00 million	$3.21	27.60

Donaldson has higher revenue and earnings than Universal Detection Technology.

Analyst Ratings

This is a summary of current ratings and price targets for Universal Detection Technology and Donaldson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Detection Technology	0	0	0	0	0.00
Donaldson	0	2	2	0	2.50

Donaldson has a consensus target price of $93.33, suggesting a potential upside of 5.37%. Given Donaldson’s stronger consensus rating and higher probable upside, analysts clearly believe Donaldson is more favorable than Universal Detection Technology.

Profitability

This table compares Universal Detection Technology and Donaldson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Detection Technology	N/A	N/A	N/A
Donaldson	10.25%	30.24%	15.11%

Institutional and Insider Ownership

82.8% of Donaldson shares are held by institutional investors. 9.6% of Universal Detection Technology shares are held by company insiders. Comparatively, 2.2% of Donaldson shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Donaldson beats Universal Detection Technology on 8 of the 9 factors compared between the two stocks.

About Universal Detection Technology

Universal Detection Technology engages in the research, development, marketing, and resale of detection devices for detecting chemical, biological, radiological, and nuclear threats in the United States, Europe, and Asia. It supplies bioterrorism detection kits capable of detecting anthrax, ricin, botulinum, plague, and SEBs; mold detection kits; chemical detection equipment; and radiation detection systems. The company also provides various counter-terrorism services, such as training courses for first responders; event security; threat evaluation and consulting; and DVDs aimed at providing information and training regarding combating terrorism and managing emergency situations. It serves first responders, as well as bioterror and military defense markets. The company markets and sells its products through in-house staff and outside consultants, as well as through the Internet. The company was formerly known as Pollution Research and Control Corporation and changed its name to Universal Detection Technology in August 2003. Universal Detection Technology was founded in 1971 and is headquartered in Beverly Hills, California.

About Donaldson

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and transportation markets; and to independent distributors, and OEM dealer networks. The company's Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes. This segment sells its products to various distributors, OEMs, and end-users. Its Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment, that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users. The company was founded in 1915 and is headquartered in Bloomington, Minnesota.