Reviewing Smiths Group (OTCMKTS:SMGZY) and V2X (NYSE:VVX)

Smiths Group (OTCMKTS:SMGZY) and V2X (NYSE:VVX) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Smiths Group and V2X’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
V2X	1.63%	15.28%	5.01%

Institutional & Insider Ownership

95.2% of V2X shares are held by institutional investors. 0.9% of V2X shares are held by 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.

Earnings & Valuation

This table compares Smiths Group and V2X”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smiths Group	$3.79 billion	2.96	$356.09 million	N/A	N/A
V2X	$4.32 billion	0.44	$34.68 million	$2.20	27.15

Smiths Group has higher earnings, but lower revenue than V2X.

Volatility & Risk

Smiths Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, V2X has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Smiths Group and V2X, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smiths Group	1	1	0	1	2.33
V2X	2	2	7	1	2.58

V2X has a consensus price target of $62.60, suggesting a potential upside of 4.82%. Given V2X’s stronger consensus rating and higher probable upside, analysts clearly believe V2X is more favorable than Smiths Group.

Summary

V2X beats Smiths Group on 9 of the 12 factors compared between the two stocks.

About Smiths Group

Smiths Group plc operates as a technology company in Americas, Europe, the Asia Pacific, and internationally. It operates through four divisions: John Crane, Smiths Detection, Flex-Tek, and Smiths Interconnect. The John Crane division offers mechanical seals, seal support systems, power transmission couplings, and specialized filtration systems. The Smiths Detection division provides sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, and contraband. The Flex-Tek division offers engineered components, flexible hosing, and rigid tubing that heat and move fluids and gases. The Smiths Interconnect division provides specialized electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets, and sub-systems used in secure connectivity applications. The company serves general industrial, safety and security, energy, and aerospace markets. 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.

About V2X

V2X, Inc. provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.