Reviewing Coates International (COTE) & BWX Technologies (BWXT)

Coates International (OTCMKTS:COTE) and BWX Technologies (NYSE:BWXT) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Dividends

BWX Technologies pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Coates International does not pay a dividend. BWX Technologies pays out 31.2% of its earnings in the form of a dividend. BWX Technologies has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

94.9% of BWX Technologies shares are owned by institutional investors. 0.8% of BWX Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Coates International and BWX Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coates International 0 0 0 0 N/A
BWX Technologies 1 4 3 0 2.25

BWX Technologies has a consensus price target of $61.29, indicating a potential upside of 29.60%. Given BWX Technologies’ higher probable upside, analysts clearly believe BWX Technologies is more favorable than Coates International.

Risk & Volatility

Coates International has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Coates International and BWX Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coates International N/A N/A -295.61%
BWX Technologies 10.81% 66.38% 13.93%

Earnings and Valuation

This table compares Coates International and BWX Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coates International $10,000.00 5.67 -$8.38 million N/A N/A
BWX Technologies $1.69 billion 2.77 $147.84 million $2.05 23.07

BWX Technologies has higher revenue and earnings than Coates International.

Summary

BWX Technologies beats Coates International on 12 of the 14 factors compared between the two stocks.

About Coates International

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. The company's CSRV system technology replaces the intake and exhausts conventional poppet valves used in various piston-driven stationary, automotive, motorcycle, and marine engines. Its CSRV system technology is used in various applications, including engines for electric power generators for home use, industrial complexes, and grid installations; and engines to power motorcycles, automobiles, light and heavy trucks, machinery, railroads, marine engines, military equipment, light aircraft, helicopters, lawn mowers, snowmobiles and jet skis, etc. Coates International, Ltd. was founded in 1988 and is headquartered in Wall Township, New Jersey.

About BWX Technologies

BWX Technologies, Inc. manufactures and sells nuclear components to the United States government. The company operates in three segments: Nuclear Operations, Technical Services, and Nuclear Energy. The Nuclear Operations segment offers precision naval nuclear components and reactors; close-tolerance and equipment for nuclear applications; and components for defense applications, as well as critical nuclear components, fuels, and assemblies for government and other uses. This segment also converts or downblends high-enriched uranium into low-enriched fuel for use in commercial reactors to generate electricity. The Technical Services segment provides uranium processing, environmental site restoration, and management and operating services to support governments in the operation of complex facilities and environmental remediation activities. The Nuclear Energy segment designs, licenses, manufactures, and delivers commercial nuclear steam generators, pressure vessels, reactor components, heat exchangers, and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other waste. This segment also offers engineering and licensing services for new nuclear plant designs; services for steam generators and balance of plant equipment; and nondestructive examination and tooling/repair solutions for other plant systems and components. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

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