Analyzing Watts Water Technologies (WTS) and NF Energy Saving (NASDAQ:BIMI)

Watts Water Technologies (NYSE:WTS) and NF Energy Saving (NASDAQ:BIMI) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares Watts Water Technologies and NF Energy Saving’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Watts Water Technologies $1.56 billion 1.82 $128.00 million $3.74 22.40
NF Energy Saving $8.51 million 3.79 -$1.56 million N/A N/A

Watts Water Technologies has higher revenue and earnings than NF Energy Saving.

Dividends

Watts Water Technologies pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. NF Energy Saving does not pay a dividend. Watts Water Technologies pays out 22.5% of its earnings in the form of a dividend. Watts Water Technologies has raised its dividend for 6 consecutive years.

Profitability

This table compares Watts Water Technologies and NF Energy Saving’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Watts Water Technologies 7.97% 14.71% 7.73%
NF Energy Saving -45.23% -11.18% -7.39%

Volatility and Risk

Watts Water Technologies has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, NF Energy Saving has a beta of -0.71, meaning that its stock price is 171% less volatile than the S&P 500.

Institutional and Insider Ownership

77.6% of Watts Water Technologies shares are owned by institutional investors. Comparatively, 0.8% of NF Energy Saving shares are owned by institutional investors. 0.8% of Watts Water Technologies shares are owned by insiders. Comparatively, 46.6% of NF Energy Saving shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Watts Water Technologies and NF Energy Saving, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Watts Water Technologies 0 4 3 0 2.43
NF Energy Saving 0 0 0 0 N/A

Watts Water Technologies presently has a consensus price target of $89.60, suggesting a potential upside of 6.95%. Given Watts Water Technologies’ higher possible upside, analysts clearly believe Watts Water Technologies is more favorable than NF Energy Saving.

Summary

Watts Water Technologies beats NF Energy Saving on 11 of the 14 factors compared between the two stocks.

About Watts Water Technologies

Watts Water Technologies, Inc. designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The company offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. It also provides heating, ventilation, and air conditioning and gas products, such as boilers, water heaters, and heating solution; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products comprising drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, and do-it-yourself chains; and directly to wholesalers and private label accounts. The company has operations in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

About NF Energy Saving

NF Energy Saving Corporation, through its subsidiaries, engages in the production and sale of energy-saving and intelligent flow control equipment in the People's Republic of China. The company manufactures large diameter energy efficient intelligent flow control systems for thermal and nuclear power generation plants, and national and regional water supply projects, as well as for municipal water, gas, and heat supply pipeline networks. It also provides equipment related to desulfurization, denitration, and dust removal for electric power generation, metallurgy, petrochemical, steel, cement, and heating supply industries. In addition, the company offers energy saving technology consulting, optimization design services, energy saving reconstruction of pipeline networks, and contractual energy management services for electric power, petrochemical, coal, metallurgy, construction, and municipal infrastructure industries. Further, it provides industrial valve components that are used in water supply and sewage systems, coal and gas fields, power generation stations, and petroleum and chemical industries; and develops and produces hi-tech and automatic-intelligence valve products. NF Energy Saving Corporation also exports its products to the United States, Russia, Turkey, Italy, Bulgaria, South Korea, Vietnam, India, Thailand, South Africa, Iraq, and Afghanistan. The company was formerly known as NF Energy Saving Corporation of America and changed its name to NF Energy Saving Corporation in August 2009. NF Energy Saving Corporation is based in Shenyang, the People's Republic of China.

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