Watts Water Technologies (NYSE:WTS) vs. Frequency Electronics (NASDAQ:FEIM) Head to Head Analysis

Watts Water Technologies (NYSE:WTS) and Frequency Electronics (NASDAQ:FEIM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Earnings & Valuation

This table compares Watts Water Technologies and Frequency Electronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Watts Water Technologies	$2.25 billion	3.65	$291.20 million	$8.73	28.23
Frequency Electronics	$65.40 million	3.44	$5.59 million	$2.41	9.66

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

Risk & Volatility

Watts Water Technologies has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Watts Water Technologies and Frequency Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Watts Water Technologies	0	4	1	0	2.20
Frequency Electronics	0	0	0	0	0.00

Watts Water Technologies currently has a consensus price target of $231.20, suggesting a potential downside of 6.17%. Given Watts Water Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Watts Water Technologies is more favorable than Frequency Electronics.

Institutional and Insider Ownership

95.0% of Watts Water Technologies shares are held by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are held by institutional investors. 1.0% of Watts Water Technologies shares are held by company insiders. Comparatively, 26.1% of Frequency Electronics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Watts Water Technologies and Frequency Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Watts Water Technologies	13.07%	17.59%	12.34%
Frequency Electronics	35.34%	57.41%	27.87%

Summary

Watts Water Technologies beats Frequency Electronics on 10 of the 14 factors compared between the two stocks.

About Watts Water Technologies

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial, marine, and residential applications. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.