Eaton (NYSE:ETN) and LiqTech International (NASDAQ:LIQT) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
This table compares Eaton and LiqTech International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Eaton has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, LiqTech International has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
Insider and Institutional Ownership
76.8% of Eaton shares are owned by institutional investors. 0.7% of Eaton shares are owned by company insiders. Comparatively, 2.8% of LiqTech International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Eaton pays an annual dividend of $2.84 per share and has a dividend yield of 3.7%. LiqTech International does not pay a dividend. Eaton pays out 52.7% of its earnings in the form of a dividend. Eaton has raised its dividend for 9 consecutive years.
This is a breakdown of current ratings and target prices for Eaton and LiqTech International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eaton presently has a consensus target price of $86.50, suggesting a potential upside of 14.04%. Given Eaton’s higher probable upside, equities analysts plainly believe Eaton is more favorable than LiqTech International.
Valuation & Earnings
This table compares Eaton and LiqTech International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eaton||$21.61 billion||1.49||$2.15 billion||$5.39||14.07|
|LiqTech International||$12.23 million||13.62||-$4.39 million||($0.24)||-37.92|
Eaton has higher revenue and earnings than LiqTech International. LiqTech International is trading at a lower price-to-earnings ratio than Eaton, indicating that it is currently the more affordable of the two stocks.
Eaton beats LiqTech International on 12 of the 17 factors compared between the two stocks.
Eaton Company Profile
Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, residential products, single phase power quality products, emergency lighting and fire detection products, wiring devices, structural support systems, and circuit protection and lighting products. The company's Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution equipment, power reliability equipment, and services. Its Hydraulics segment offers various power products, controls and sensing products, fluid conveyance products, filtration systems solutions, industrial drum and disc brakes, and golf grips. The company's Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use. Its Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, fuel vapor components, fluid connectors, and conveyance products. The company's eMobility segment provides voltage inverters, converters, fuses, onboard chargers, circuit protection units, vehicle controls, power distribution products, fuel tank isolation valves, and commercial vehicle hybrid systems. It serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers. The company was founded in 1916 and is based in Dublin, Ireland.
LiqTech International Company Profile
LiqTech International, Inc., a clean technology company, provides technologies for gas and liquid purification by manufacturing ceramic silicon carbide filters. The company manufactures and sells ceramic silicon carbide membranes and systems for liquid filtration under the LiqTech, Cometas, and Provital brand names, which are used for the filtration of produced water, pre-filtration of reverse osmosis drinking water, industrial applications, producing clean drinking water, and pool and spa water, as well as marine scrubber bleed water. It also offers diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market; and kiln furniture to support ceramics that create additional space to maximize the number of items for each firing. LiqTech International, Inc. sells its products primarily to industrial customers in the United States, Canada, Europe, Asia, and South America. The company was formerly known as Blue Moose Media, Inc. and changed its name to LiqTech International, Inc. in October 2011. LiqTech International, Inc. was founded in 2004 and is headquartered in Ballerup, Denmark.
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