Head to Head Analysis: Smiths Group (SMGZY) and Oil-Dri Co. Of America (NYSE:ODC)

Smiths Group (OTCMKTS: SMGZY) and Oil-Dri Co. Of America (NYSE:ODC) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Dividends

Smiths Group pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Oil-Dri Co. Of America pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Smiths Group pays out 29.3% of its earnings in the form of a dividend. Oil-Dri Co. Of America has raised its dividend for 15 consecutive years. Oil-Dri Co. Of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Smiths Group has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Oil-Dri Co. Of America has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Smiths Group and Oil-Dri Co. Of America, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smiths Group 1 1 1 0 2.00
Oil-Dri Co. Of America 0 0 0 0 N/A

Institutional and Insider Ownership

1.1% of Smiths Group shares are owned by institutional investors. Comparatively, 53.7% of Oil-Dri Co. Of America shares are owned by institutional investors. 13.9% of Oil-Dri Co. Of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Smiths Group and Oil-Dri Co. Of America’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smiths Group $4.16 billion 2.20 $712.11 million $1.23 18.80
Oil-Dri Co. Of America $262.31 million 1.04 $10.79 million N/A N/A

Smiths Group has higher revenue and earnings than Oil-Dri Co. Of America.

Profitability

This table compares Smiths Group and Oil-Dri Co. Of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smiths Group N/A N/A N/A
Oil-Dri Co. Of America 2.44% 9.20% 5.53%

Summary

Oil-Dri Co. Of America beats Smiths Group on 8 of the 13 factors compared between the two stocks.

Smiths Group Company Profile

Smiths Group plc designs, manufactures, and sells various products and services for the threat and contraband detection, medical devices, energy, communications, and engineered components markets worldwide. It operates through John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect, and Flex-Tek divisions. The John Crane division offers engineered products and services comprising mechanical seals, seal support systems, engineered bearings, power transmission couplings, and specialist filtration systems. The Smiths Medical division provides specialty medical devices and consumables, including infusion systems, vascular access, patient airway and temperature management equipment, and specialty devices in the areas of diagnostics and emergency patient transport. This division serves hospitals, surgery centers, clinics, and home care providers; and OEMs. The Smiths Detection division offers detection technologies comprising sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, and contraband. The Smiths Interconnect division provides electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets, and sub-systems for the defense, aerospace, space, rail, medical, and semiconductor test end markets. The Flex-Tek division offers engineered components that heat and move fluids and gases for aerospace, consumer products, construction, medical, and industrial applications. The company was formerly known as Smiths Industries and changed its name to Smiths Group plc in 2000. Smiths Group plc was founded in 1851 and is headquartered in London, the United Kingdom.

Oil-Dri Co. Of America Company Profile

Oil-Dri Corporation of America develops, manufactures, and markets sorbent products in the United States and internationally. It provides agricultural and horticultural products, including functional granules and powders for crop protection chemical carriers, drying agents, and growing media under the Agsorb, Verge, Flo-Fre, and Terra-Green brand names. The company also offers animal health and nutrition products, such as animal feed pellet binders for the livestock and aquaculture industries under the Amlan, Calibrin, ConditionAde, Pel-Unite, and Pel-Unite Plus brand names; and sports products for use on baseball, softball, football, and soccer fields under the Pro's Choice brand name. In addition, it provides bleaching clay and purification aid products for bleaching, purification, and filtration applications under the Pure-Flo, Perform, Select, and Ultra-Clear brand names; cat litter products, including scoopable and non-clumping litters under the Cat's Pride and Jonny Cat brand names; and industrial and automotive sorbent products from clay, polypropylene, and recycled cotton materials to absorb oil, grease, water, and other types of spills under the Oil-Dri brand name. The company's customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users; processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Oil-Dri Corporation of America was founded in 1941 and is based in Chicago, Illinois.

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