Makita (MKTAY) versus SPX Flow (FLOW) Financial Review

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Makita (OTCMKTS:MKTAY) and SPX Flow (NYSE:FLOW) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Dividends

Makita pays an annual dividend of $0.34 per share and has a dividend yield of 0.9%. SPX Flow does not pay a dividend. Makita pays out 18.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Makita and SPX Flow’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Makita $4.41 billion 2.28 $492.79 million $1.86 19.30
SPX Flow $1.95 billion 0.82 $46.40 million $1.27 29.54

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

Profitability

This table compares Makita and SPX Flow’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Makita 11.47% 10.14% 8.65%
SPX Flow 4.89% 9.59% 3.51%

Volatility & Risk

Makita has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, SPX Flow has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.

Insider & Institutional Ownership

0.5% of Makita shares are owned by institutional investors. Comparatively, 86.5% of SPX Flow shares are owned by institutional investors. 1.0% of Makita shares are owned by company insiders. Comparatively, 2.0% of SPX Flow shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Makita and SPX Flow, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Makita 0 1 0 0 2.00
SPX Flow 1 5 4 0 2.30

SPX Flow has a consensus price target of $49.63, indicating a potential upside of 32.26%. Given SPX Flow’s stronger consensus rating and higher possible upside, analysts clearly believe SPX Flow is more favorable than Makita.

About Makita

Makita Corporation engages in the manufacture and wholesale of electric power tools, woodworking machines, pneumatic tools, and gardening and household equipment. The company operates through Japan Group, Europe Group, North America Group, Asia Group, and Other Regions Group segments. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sandling, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company also provides sanders, hammer drills, rotary hammers, and circular saws. Makita Corporation markets its products under the Makita or Maktec brands in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.

About SPX Flow

SPX FLOW, Inc. provides various engineered solutions worldwide. The company engineers, designs, manufactures, and markets products and solutions used to process, blend, filter, dry, meter, and transport fluids with a focus on original equipment installation, including turn-key systems, modular systems, and components, as well as aftermarket components and support services. It operates through three segments: Food and Beverage, Power and Energy, and Industrial. The Food and Beverage segment offers mixing, drying, evaporation, and separation systems and components; heat exchangers, and reciprocating and centrifugal pump technologies; and turn-key systems primarily under the Anhydro, APV, Bran+Luebbe, Gerstenberg Schroeder, LIGHTNIN, Seital, and Waukesha Cherry-Burrell brands. The Power and Energy segment provides pumps, valves, and related accessories primarily for customers in oil and gas, and nuclear and other conventional power industries under the APV, Bran+Luebbe, ClydeUnion Pumps, Copes-Vulcan, Dollinger Filtration, LIGHTNIN, M&J Valve, Plenty, and Vokes brands. The Industrial segment offers air dryers, filtration equipment, mixers, pumps, hydraulic technologies, and heat exchangers under the Airpel, APV, Bolting Systems, Delair, Deltech, Hankison, Jemaco, Johnson Pump, LIGHTNIN, Power Team, and Stone brands. This segment primarily serves customers in chemical, air treatment, mining, pharmaceutical, marine, shipbuilding, infrastructure construction, general industrial, and water treatment industries. SPX FLOW, Inc. is headquartered in Charlotte, North Carolina.

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