Newport (NEWP) versus Dover (DOV) Financial Review

Newport (NASDAQ: NEWP) and Dover (NYSE:DOV) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Newport and Dover’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newport 6.37% 10.63% 6.60%
Dover 8.91% 14.10% 5.52%

Institutional and Insider Ownership

84.5% of Dover shares are held by institutional investors. 2.5% of Dover shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Dover pays an annual dividend of $1.88 per share and has a dividend yield of 1.8%. Newport does not pay a dividend. Dover pays out 43.7% of its earnings in the form of a dividend. Newport has increased its dividend for 62 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Newport and Dover, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newport 0 0 0 0 N/A
Dover 0 10 5 0 2.33

Dover has a consensus target price of $95.64, indicating a potential downside of 8.17%. Given Dover’s higher possible upside, analysts clearly believe Dover is more favorable than Newport.

Valuation and Earnings

This table compares Newport and Dover’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newport N/A N/A N/A $0.78 29.47
Dover $6.79 billion 2.39 $508.89 million $4.30 24.22

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

Summary

Dover beats Newport on 9 of the 13 factors compared between the two stocks.

Newport Company Profile

Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.

Dover Company Profile

Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.

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