Critical Analysis: Zebra Technologies (NASDAQ:ZBRA) versus Zurn Water Solutions (NYSE:ZWS)

Zebra Technologies (NASDAQ:ZBRA) and Zurn Water Solutions (NYSE:ZWS) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

84.4% of Zebra Technologies shares are held by institutional investors. Comparatively, 99.2% of Zurn Water Solutions shares are held by institutional investors. 1.1% of Zebra Technologies shares are held by company insiders. Comparatively, 2.9% of Zurn Water Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Zebra Technologies and Zurn Water Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zebra Technologies 15.45% 36.87% 16.51%
Zurn Water Solutions 10.48% 15.67% 6.87%

Analyst Recommendations

This is a summary of recent ratings and price targets for Zebra Technologies and Zurn Water Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zebra Technologies 1 1 6 0 2.63
Zurn Water Solutions 0 1 2 0 2.67

Zebra Technologies currently has a consensus price target of $584.17, indicating a potential downside of 2.32%. Zurn Water Solutions has a consensus price target of $40.50, indicating a potential upside of 9.05%. Given Zurn Water Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Zurn Water Solutions is more favorable than Zebra Technologies.

Risk & Volatility

Zebra Technologies has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Zurn Water Solutions has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Earnings and Valuation

This table compares Zebra Technologies and Zurn Water Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zebra Technologies $4.45 billion 7.18 $504.00 million $15.68 38.14
Zurn Water Solutions $2.07 billion 2.18 $48.50 million $1.80 20.63

Zebra Technologies has higher revenue and earnings than Zurn Water Solutions. Zurn Water Solutions is trading at a lower price-to-earnings ratio than Zebra Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Zebra Technologies beats Zurn Water Solutions on 10 of the 14 factors compared between the two stocks.

About Zebra Technologies

Zebra Technologies Corp. engages in designing, manufacturing and selling of automatic identification and data capture products. Its products include mobile computers, barcode scanners, radio frequency identification devices (RFID) readers, specialty printers for barcode labeling and personal identification, real-time location systems, accessories and supplies, such as self-adhesive labels and other consumables, and software utilities and applications. It also provides services such as maintenance, technical support, repair, managed and professional services, including cloud-based subscriptions. It operates through the following two segments: Asset Intelligence & Tracking (AIT) and Enterprise Visibility & Mobility (EVM). The AIT segment comprises of barcode and card printing, location solutions, supplies, and services. The EVM segment comprises of mobile computing, data capture, and RFID. The company was founded by Edward L. Kaplan and Gerhard Cless in 1969 and is headquartered in Lincolnshire, IL.

About Zurn Water Solutions

Zurn Water Solutions Corp. engages in the manufacture of engineered power transmission, aerospace, and other precision motion technology products. The firm operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.The company was founded by Christopher W. Levalley, F. W. Sivyer and W. A. Draves in 1891 and is headquartered in Milwaukee

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