Head to Head Survey: DNOW (NYSE:DNOW) versus Chart Industries (NYSE:GTLS)

DNOW (NYSE:DNOW) and Chart Industries (NYSE:GTLS) are both mid-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

97.6% of DNOW shares are held by institutional investors. 1.9% of DNOW shares are held by company insiders. Comparatively, 1.0% of Chart Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares DNOW and Chart Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.82 billion	0.89	-$89.00 million	($0.73)	-18.82
Chart Industries	$4.26 billion	2.34	$40.70 million	$0.26	803.10

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

Profitability

This table compares DNOW and Chart Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	-4.14%	4.94%	2.97%
Chart Industries	-0.62%	10.50%	3.65%

Risk & Volatility

DNOW has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Chart Industries has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for DNOW and Chart Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	1	1	3	0	2.40
Chart Industries	2	11	0	0	1.85

DNOW presently has a consensus target price of $17.00, suggesting a potential upside of 23.77%. Chart Industries has a consensus target price of $201.80, suggesting a potential downside of 3.35%. Given DNOW’s stronger consensus rating and higher probable upside, analysts clearly believe DNOW is more favorable than Chart Industries.

Summary

Chart Industries beats DNOW on 9 of the 14 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About Chart Industries

Chart Industries, Inc. engages in the designing, engineering, and manufacturing of process technologies and equipment for the gas and liquid molecules in the United States and internationally. The company operates in four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers natural gas processing solutions; process technology, liquefaction capabilities, and critical equipment for the LNG, include small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum heat exchangers, Core-in-Kettle heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the HVAC, power, and refining applications. Further, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. Chart Industries, Inc. was founded in 1859 and is headquartered in Ball Ground, Georgia.