Financial Comparison: Luxfer (NYSE:LXFR) and Standex International (NYSE:SXI)

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

Risk and Volatility

Luxfer has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Standex International has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

90.8% of Luxfer shares are owned by institutional investors. Comparatively, 90.4% of Standex International shares are owned by institutional investors. 1.2% of Luxfer shares are owned by insiders. Comparatively, 2.5% of Standex International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Luxfer	1.56%	12.14%	7.25%
Standex International	11.18%	14.38%	6.66%

Dividends

Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 3.1%. Standex International pays an annual dividend of $1.36 per share and has a dividend yield of 0.5%. Luxfer pays out 236.4% 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 16.6% of its earnings in the form of a dividend. Standex International has raised its dividend for 14 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Luxfer and Standex International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luxfer	0	2	0	1	2.67
Standex International	1	0	4	0	2.60

Standex International has a consensus target price of $289.67, indicating a potential upside of 5.15%. Given Standex International’s higher probable upside, analysts clearly believe Standex International is more favorable than Luxfer.

Earnings & Valuation

This table compares Luxfer and Standex International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luxfer	$384.60 million	1.18	$7.70 million	$0.22	76.20
Standex International	$790.11 million	4.22	$55.76 million	$8.21	33.55

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

Summary

Standex International beats Luxfer on 11 of the 18 factors compared between the two stocks.

About Luxfer

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 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.