Welbilt (WBT) versus Tennant (TNC) Head-To-Head Analysis

Welbilt (NYSE: WBT) and Tennant (NYSE:TNC) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider and Institutional Ownership

89.9% of Welbilt shares are held by institutional investors. Comparatively, 91.1% of Tennant shares are held by institutional investors. 0.4% of Welbilt shares are held by insiders. Comparatively, 5.6% of Tennant shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Welbilt and Tennant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welbilt 0 3 5 0 2.63
Tennant 0 0 1 0 3.00

Welbilt currently has a consensus target price of $23.40, suggesting a potential upside of 20.31%. Given Welbilt’s higher possible upside, analysts plainly believe Welbilt is more favorable than Tennant.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Welbilt $1.45 billion 1.88 $134.00 million $0.77 25.26
Tennant $1.00 billion 1.21 -$6.19 million $1.54 43.96

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

Volatility and Risk

Welbilt has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Tennant has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Welbilt and Tennant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Welbilt 9.27% 312.48% 5.88%
Tennant -0.62% 9.68% 3.24%

Dividends

Tennant pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Welbilt does not pay a dividend. Tennant pays out 54.5% of its earnings in the form of a dividend. Tennant has raised its dividend for 46 consecutive years.

Summary

Welbilt beats Tennant on 10 of the 17 factors compared between the two stocks.

Welbilt Company Profile

Welbilt, Inc., formerly Manitowoc Foodservice, Inc., is a commercial foodservice equipment company. The Company designs, manufactures and supplies food and beverage equipment for the global commercial foodservice market, offering customers operator and patron insights, kitchen solutions, culinary expertise, and implementation support and service. It operates through three segments: Americas, EMEA and APAC. The Americas segment includes the United States, Canada and Latin America. The EMEA segment consists of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment consists of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and the Philippines. It supplies foodservice equipment to commercial and institutional foodservice operators. Its brands include Cleveland, Convotherm, Delfield, fitKitchen, Frymaster, Garland, Kolpak, Lincoln, Manitowoc Ice, Merco, Merrychef and Multiplex.

Tennant Company Profile

Tennant Company is engaged in designing, manufacturing and marketing of cleaning solutions. The Company’s segments are Americas; Europe, Middle East, Africa, and Asia Pacific. The Company offers a range of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Its products are used in various types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets. The Company markets and sells its products under various brands: Tennant, Nobles, Green Machines, Alfa Uma Empresa Tennant, IRIS, Orbio IPC, IPC Foma, IPC Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Ready System, Euromop, and Pulex.

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