Rino International (OTCMKTS:RINO) vs. Xylem (NYSE:XYL) Critical Review

Xylem (NYSE:XYL) and Rino International (OTCMKTS:RINO) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations for Xylem and Rino International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylem	0	4	9	0	2.69
Rino International	0	0	0	0	0.00

Xylem presently has a consensus price target of $158.08, suggesting a potential upside of 34.45%. Given Xylem’s stronger consensus rating and higher possible upside, research analysts plainly believe Xylem is more favorable than Rino International.

Earnings and Valuation

This table compares Xylem and Rino International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylem	$9.04 billion	3.16	$957.00 million	$3.92	29.99
Rino International	N/A	N/A	N/A	N/A	N/A

Xylem has higher revenue and earnings than Rino International.

Institutional and Insider Ownership

88.0% of Xylem shares are owned by institutional investors. 0.3% of Xylem shares are owned by insiders. Comparatively, 12.1% of Rino International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Xylem and Rino International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xylem	10.59%	11.11%	7.22%
Rino International	N/A	N/A	N/A

Risk and Volatility

Xylem has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Rino International has a beta of -6.33, indicating that its stock price is 733% less volatile than the S&P 500.

Summary

Xylem beats Rino International on 9 of the 10 factors compared between the two stocks.

About Xylem

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands. The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue, and Flojet brands. The Measurement & Control Solutions segment offers smart meters, networked communication devices, data analytics, test equipment, controls, sensor devices, software and managed services, and critical infrastructure services; and software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment. This segment sells its products under the Pure Technologies, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brands. The Integrated Solutions and Services segment provides maintenance services, mobile services, digital outsourced solutions, wastewater systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, ion exchange, and deionization under Aquapro, WaterOne, and Ion Pure brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in May 2011. Xylem Inc. was incorporated in 2011 and is headquartered in Washington, District of Columbia.

About Rino International

RINO International Corporation, through its subsidiaries, operates as an environmental protection and remediation company in the People's Republic of China. The company engages in designing, manufacturing, installing, and servicing wastewater treatment and flue gas desulphurization equipment primarily for use in the iron and steel industry; and anti-oxidation products and equipment for use in the manufacture of hot rolled steel plate products. Its products include Lamella Inclined Tube Settler Waste Water Treatment System, which comprise industrial water treatment equipment, effluent-condensing equipment sets, solid and liquid abstraction dewatering equipment, and coal gas dust removal and cleaning equipment; and Circulating, Fluidized Bed, Flue Gas Desulphurization System that removes particulate sulphur from flue gas emissions generated by the sintering process in the production of iron and steel; and High Temperature Anti-Oxidation System for hot rolled steel, a set of products and a mechanized system, which reduces oxidation-related output losses in the production of continuous cast hot rolled steel. In addition, it offers contract machining services for third-party industrial enterprises. The company was incorporated in 1984 and is headquartered in Dalian, the People's Republic of China.