SmartHeat (HEAT) and Babcock & Wilcox Enterprises (BW) Financial Review

SmartHeat (OTCMKTS:HEAT) and Babcock & Wilcox Enterprises (NYSE:BW) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SmartHeat and Babcock & Wilcox Enterprises, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SmartHeat 0 0 0 0 N/A
Babcock & Wilcox Enterprises 1 0 0 0 1.00

Babcock & Wilcox Enterprises has a consensus price target of $3.50, indicating a potential upside of 260.82%.

Risk & Volatility

SmartHeat has a beta of 3.07, suggesting that its stock price is 207% more volatile than the S&P 500. Comparatively, Babcock & Wilcox Enterprises has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares SmartHeat and Babcock & Wilcox Enterprises’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SmartHeat $340,000.00 0.00 -$8.38 million N/A N/A
Babcock & Wilcox Enterprises $1.56 billion 0.11 -$379.82 million N/A N/A

SmartHeat has higher earnings, but lower revenue than Babcock & Wilcox Enterprises.

Profitability

This table compares SmartHeat and Babcock & Wilcox Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SmartHeat N/A N/A N/A
Babcock & Wilcox Enterprises -42.83% -127.13% -15.08%

Insider & Institutional Ownership

70.7% of Babcock & Wilcox Enterprises shares are held by institutional investors. 2.2% of SmartHeat shares are held by company insiders. Comparatively, 3.6% of Babcock & Wilcox Enterprises 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.

Summary

SmartHeat beats Babcock & Wilcox Enterprises on 5 of the 8 factors compared between the two stocks.

SmartHeat Company Profile

SmartHeat Inc. does not have significant operations. It intends to seek potential assets, property, or businesses to acquire, in a business combination, by reorganization, merger, or acquisition. Previously, it was engaged in the manufacture and sale of heat pumps for commercial and residential applications. The company was formerly known as Pacific Goldrim Resources, Inc. and changed its name to SmartHeat Inc. in April 2008. SmartHeat Inc. was incorporated in 2006 and is headquartered in Shenyang, China.

Babcock & Wilcox Enterprises Company Profile

Babcock & Wilcox Enterprises, Inc. provides fossil and renewable power generation and environmental equipment for the power and industrial markets worldwide. Its Power segment offers boiler cleaning and material handling equipment; and supercritical, subcritical, fluidized bed, chemical recovery, industrial power, package, and waste heat boilers, as well as heat recovery steam generators. It also provides air pollution control products and related equipment, such as wet and dry flue gas desulfurization systems, catalytic and non-catalytic nitrogen oxides reduction systems, low nitrogen oxides burners and overfire air systems, fabric filter baghouses, wet and dry electrostatic precipitators, mercury control systems, and dry sorbent injection for acid gas mitigation. In addition, this segment also offers replacement parts, retrofit and upgrade projects, fuel switching and repowering projects, and training programs; and field technical, construction and maintenance, start-up and commissioning, and plant operations and maintenance services. The company's Renewable segment provides steam-generating systems; environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries; and plant operations and maintenance services. Its Industrial segment offers oxidizers, solvent recovery and distillation systems, wet electrostatic precipitators, scrubbers, and heat recovery systems; and specialized industrial process systems, coating lines, and equipment. This segment also provides air-cooled (dry) cooling systems, mechanical draft wet cooling towers, and natural draft wet cooling hyperbolic towers; end-to-end aftermarket services, such as spare parts, upgrades and revamping of existing installations, and remote monitoring; and gas turbine inlet and exhaust systems, custom silencers, and filters and enclosures. The company was founded in 1867 and is headquartered in Charlotte, North Carolina.

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