IDEX (NYSE:IEX – Get Free Report) and Trimble (NASDAQ:TRMB – Get Free Report) are both large-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Profitability
This table compares IDEX and Trimble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IDEX | 14.38% | 15.29% | 8.89% |
| Trimble | 12.38% | 11.61% | 7.32% |
Risk and Volatility
IDEX has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Trimble has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IDEX | 0 | 3 | 6 | 0 | 2.67 |
| Trimble | 0 | 2 | 10 | 0 | 2.83 |
IDEX currently has a consensus price target of $241.11, suggesting a potential upside of 10.47%. Trimble has a consensus price target of $87.33, suggesting a potential upside of 63.89%. Given Trimble’s stronger consensus rating and higher probable upside, analysts clearly believe Trimble is more favorable than IDEX.
Earnings and Valuation
This table compares IDEX and Trimble”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IDEX | $3.46 billion | 4.67 | $483.20 million | $6.76 | 32.29 |
| Trimble | $3.59 billion | 3.46 | $424.00 million | $1.90 | 28.05 |
IDEX has higher earnings, but lower revenue than Trimble. Trimble is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.0% of IDEX shares are held by institutional investors. Comparatively, 93.2% of Trimble shares are held by institutional investors. 0.5% of IDEX shares are held by company insiders. Comparatively, 0.6% of Trimble shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
IDEX beats Trimble on 8 of the 14 factors compared between the two stocks.
About IDEX
IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics positive displacement pumps, powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, and precision photonic solutions. This segment serves food and beverage, life sciences, analytical instruments, pharmaceutical and biopharmaceutical, industrial, semiconductor, automotive/transportation, medical/dental, energy, cosmetics, marine, chemical, wastewater and water treatment, research and aerospace/defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.
About Trimble
Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for project design and visualization; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades. Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Westminster, Colorado.
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