Financial Contrast: Twin Disc (NASDAQ:TWIN) and Standex International (NYSE:SXI)

Twin Disc (NASDAQ:TWIN) and Standex International (NYSE:SXI) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

65.3% of Twin Disc shares are owned by institutional investors. Comparatively, 90.4% of Standex International shares are owned by institutional investors. 22.1% of Twin Disc shares are owned by insiders. Comparatively, 2.5% of Standex International 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.

Profitability

This table compares Twin Disc and Standex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	0.10%	0.23%	0.10%
Standex International	6.29%	14.20%	6.37%

Volatility and Risk

Twin Disc has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Standex International has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Valuation & Earnings

This table compares Twin Disc and Standex International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Disc	$340.74 million	0.72	-$1.89 million	$0.02	855.25
Standex International	$790.11 million	3.52	$55.76 million	$4.36	52.62

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

Dividends

Twin Disc pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. Standex International pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Twin Disc pays out 800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Standex International pays out 31.2% of its earnings in the form of a dividend. Standex International has increased its dividend for 14 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Twin Disc and Standex International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	1	1	1	0	2.00
Standex International	0	1	4	0	2.80

Twin Disc presently has a consensus target price of $12.00, suggesting a potential downside of 29.85%. Standex International has a consensus target price of $264.00, suggesting a potential upside of 15.07%. Given Standex International’s stronger consensus rating and higher probable upside, analysts clearly believe Standex International is more favorable than Twin Disc.

Summary

Standex International beats Twin Disc on 14 of the 17 factors compared between the two stocks.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.

About Standex International

Standex International Corporation, together with subsidiaries, engages in the manufacture and sale of various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and custom wound transformers and inductors for low and high frequency, current sense technology, advanced planar transformer technology, value added assembly, and mechanical packaging applications under the Standex Electronics, Renco, and Agile Magnetics. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries under the Piazza Rosa, World Client Services, Tenibac-Graphion, GS Engineering, and Innovent brand names. The Scientific segment offers temperature-controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets under the American BioTech Supply, Lab Research Products, Corepoint, Cryosafe, CryoGuard, and Scientific brands. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets under the Spincraft brand. The Specialty Solutions segment manufactures and sells refrigerated, heated, and dry merchandizing display cases; and single and double acting telescopic, and piston rod hydraulic cylinders under the Federal and Custom Hoist brands. The company was founded in 1955 and is headquartered in Salem, New Hampshire.