Head to Head Review: Suez Environnement (SZEVY) versus Ingersoll-Rand (IR)

Suez Environnement (OTCMKTS: SZEVY) and Ingersoll-Rand (NYSE:IR) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Dividends

Suez Environnement pays an annual dividend of $0.26 per share and has a dividend yield of 3.6%. Ingersoll-Rand pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Suez Environnement pays out 65.0% of its earnings in the form of a dividend. Ingersoll-Rand pays out 39.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ingersoll-Rand has increased its dividend for 7 consecutive years.

Volatility and Risk

Suez Environnement has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Ingersoll-Rand has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of Suez Environnement shares are held by institutional investors. Comparatively, 80.7% of Ingersoll-Rand shares are held by institutional investors. 0.6% of Ingersoll-Rand shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Suez Environnement and Ingersoll-Rand’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suez Environnement $17.94 billion 0.49 $341.12 million $0.40 18.05
Ingersoll-Rand $14.20 billion 1.47 $1.30 billion $4.51 18.53

Ingersoll-Rand has lower revenue, but higher earnings than Suez Environnement. Suez Environnement is trading at a lower price-to-earnings ratio than Ingersoll-Rand, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Suez Environnement and Ingersoll-Rand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suez Environnement N/A N/A N/A
Ingersoll-Rand 9.17% 16.91% 6.56%

Analyst Recommendations

This is a breakdown of current ratings for Suez Environnement and Ingersoll-Rand, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suez Environnement 1 3 2 0 2.17
Ingersoll-Rand 0 7 8 0 2.53

Ingersoll-Rand has a consensus target price of $103.33, indicating a potential upside of 23.66%. Given Ingersoll-Rand’s stronger consensus rating and higher probable upside, analysts plainly believe Ingersoll-Rand is more favorable than Suez Environnement.

Summary

Ingersoll-Rand beats Suez Environnement on 15 of the 17 factors compared between the two stocks.

About Suez Environnement

SUEZ SA, together with its subsidiaries, engages in the water and waste cycle management business. The company operates through five segments: Water Europe, Recycling and Recovery Europe, International, Water Technologies & Solutions, and Other. It provides water distribution and treatment services to individuals, local authorities, and industrial clients; waste collection and treatment services, including collection, sorting, recycling, composting, energy recovery, and landfilling for non-hazardous and hazardous waste for local authorities and industrial clients. The company also offers consulting services; and engineering and construction contracts and other services. SUEZ SA was founded in 1858 and is headquartered in Paris, France.

About Ingersoll-Rand

Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car. Its Climate segment includes Trane and American Standard Heating and Air Conditioning, which provide heating, ventilation and air conditioning systems, and commercial and residential building services, parts, support and controls. It offers energy services and building automation through Trane Building Advantage and Nexia. Its Industrial segment includes compressed air and gas systems and services, power tools, material handling systems, ARO fluid management equipment, as well as Club Car golf, utility and rough terrain vehicles.

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