Reviewing Dover (NYSE:DOV) and ChampionX (NYSE:CHX)

ChampionX (NYSE:CHX) and Dover (NYSE:DOV) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares ChampionX and Dover’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChampionX -57.05% 6.94% 3.41%
Dover 10.59% 29.80% 10.19%

Risk and Volatility

ChampionX has a beta of 3.57, indicating that its stock price is 257% more volatile than the S&P 500. Comparatively, Dover has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares ChampionX and Dover’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChampionX $1.13 billion 0.66 $52.16 million $0.99 9.75
Dover $7.14 billion 1.91 $677.92 million $5.93 15.95

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

Analyst Recommendations

This is a summary of recent recommendations for ChampionX and Dover, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChampionX 0 0 2 0 3.00
Dover 0 4 5 0 2.56

ChampionX currently has a consensus target price of $13.50, suggesting a potential upside of 39.90%. Dover has a consensus target price of $97.63, suggesting a potential upside of 3.23%. Given ChampionX’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ChampionX is more favorable than Dover.

Institutional and Insider Ownership

93.5% of ChampionX shares are owned by institutional investors. Comparatively, 83.8% of Dover shares are owned by institutional investors. 0.6% of ChampionX shares are owned by company insiders. Comparatively, 1.0% of Dover shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Dover beats ChampionX on 10 of the 14 factors compared between the two stocks.

ChampionX Company Profile

As of June 3, 2020, ChampionX Holding Inc. was acquired by Apergy Corporation. Championx Holding Inc. engages in upstream business. The company offers technology-driven chemistry programs and value-enabling solutions and services to the global upstream oil and natural gas industry. It provides reservoir management, onshore and offshore production, midstream management, and water capabilities. Championx Holding Inc. was formerly known as Nalco Champion. The company was incorporated in 2019 and is based in Sugar Land, Texas.

Dover Company Profile

Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. The company operates through three segments: Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual and power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets. The Fluids segment handles fluids across the retail fueling, chemical, hygienic, oil and gas, and industrial markets. This segment also manufactures pumps that are used to transfer liquid and bulk products in various markets, including refined fuels, liquefied petroleum gas, food/sanitary, transportation, and chemical process industries; pumps and connectors for use in various bio-processing, medical, and specialty applications; and pumps, filtration systems, pelletizing equipment, compressors, and bearings for use in the chemical, polymer, power generation, oil and gas, industrial, and marine industries. The Refrigeration & Food Equipment segment manufactures refrigeration systems, refrigeration display cases, specialty glass, commercial glass refrigerator and freezer doors, and brazed heat exchangers for industrial and climate control; and electrical distribution products and engineering services, commercial food service equipment, wash systems, cook-chill production systems, custom food storage and preparation products, kitchen ventilation systems, conveyer systems, and beverage can-making machinery. The company was founded in 1947 and is headquartered in Downers Grove, Illinois.

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