Contrasting Sulzer (OTCMKTS:SULZF) & Crane (NYSE:CR)

Sulzer (OTCMKTS:SULZF) and Crane (NYSE:CR) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Dividends

Sulzer pays an annual dividend of $2.08 per share and has a dividend yield of 1.4%. Crane pays an annual dividend of $0.82 per share and has a dividend yield of 0.4%. Sulzer pays out 11.5% of its earnings in the form of a dividend. Crane pays out 18.1% 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. Sulzer is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Sulzer and Crane”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sulzer	N/A	N/A	N/A	$18.11	7.95
Crane	$2.28 billion	4.65	$401.10 million	$4.54	40.70

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

Profitability

This table compares Sulzer and Crane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sulzer	N/A	N/A	N/A
Crane	13.10%	24.45%	10.14%

Insider & Institutional Ownership

26.9% of Sulzer shares are owned by institutional investors. Comparatively, 75.1% of Crane shares are owned by institutional investors. 2.4% of Crane shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sulzer and Crane, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sulzer	0	0	0	0	0.00
Crane	0	2	4	0	2.67

Crane has a consensus target price of $167.00, suggesting a potential downside of 9.63%. Given Crane’s stronger consensus rating and higher possible upside, analysts plainly believe Crane is more favorable than Sulzer.

Summary

Crane beats Sulzer on 10 of the 13 factors compared between the two stocks.

About Sulzer

Sulzer Ltd develops and sells products and services for fluid engineering and chemical processing applications worldwide. It offers side-mounted horizontal and top-mounted vertical agitators, dynamic chemical mixers, and tower and tank flow management products; static and submersible mixers; tower management systems; turbo compressors, aeration systems, and mechanical aerators; medium consistency products; pumping solutions and auxiliary equipment; control and monitoring equipment; and products for distillation, absorption, stripping, evaporation, phase separation, liquid-liquid extraction, and crystallization. The company also provides process solutions, including initial concept and pilot testing; polymer production technologies; lifting stations; pump and lifting station accessories; solids reduction, separation, and removal systems; and screening, sedimentation, and filtration solutions. In addition, it offers Sulzer sense online services that allow access to equipment-related information; sense condition monitoring solutions, which detects possible equipment failures early on and optimizes maintenance planning; control and monitoring software solutions, such as monitoring and surveillance, remote control and alarm, and monitor and configuration software; BLUE BOX, a software solution; rotating equipment, static equipment, industrial process equipment, spare parts, and testing services; process services comprising process validation, studies and conceptual designs, and testing facilities; selection tools; and water, wastewater, and dewatering products services. The company provides its products and services for bio-based, recycling, and carbon capture; construction; fertilizers; food and beverages; mining and metals; oil, gas, and chemicals; polymer; power generation; pulp, paper, and board; transportation; and water and wastewater applications. Sulzer Ltd was founded in 1834 and is headquartered in Winterthur, Switzerland.

About Crane

Crane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. The company operates in three segments: Aerospace & Electronics, Process Flow Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts for commercial aerospace, as well as the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for commercial aircraft and fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission-critical applications. It offers process valves and related products, such as lined pipe, fittings and hoses, air-operated diaphragm and peristaltic pumps, instrumentation and sampling systems, valve positioning and control systems, and valve diagnostic and calibration systems; commercial valves; and pumps and systems. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils for use in the manufacturing of recreational vehicles, as well as in commercial and industrial building applications. This segment sells directly to RV, trailer, and truck manufacturers, as well as through distributors and retailers. The company provides its products and solutions to end markets, including commercial and military aerospace, defense, and space; chemical and pharmaceutical production; water and wastewater; non-residential and municipal construction; energy; and other general industrial and consumer-related applications. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.