Franklin Electric (NASDAQ:FELE – Get Free Report) and NN (NASDAQ:NNBR – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Analyst Ratings
This is a summary of current ratings and price targets for Franklin Electric and NN, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Electric | 0 | 2 | 1 | 0 | 2.33 |
| NN | 1 | 1 | 2 | 1 | 2.60 |
Franklin Electric presently has a consensus target price of $114.50, suggesting a potential upside of 13.10%. NN has a consensus target price of $5.67, suggesting a potential upside of 63.30%. Given NN’s stronger consensus rating and higher possible upside, analysts clearly believe NN is more favorable than Franklin Electric.
Risk and Volatility
Franklin Electric has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, NN has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500.
Profitability
This table compares Franklin Electric and NN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Electric | 7.06% | 15.18% | 10.13% |
| NN | -6.21% | 20.38% | 1.49% |
Earnings & Valuation
This table compares Franklin Electric and NN”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Electric | $2.21 billion | 2.02 | $147.09 million | $3.47 | 29.18 |
| NN | $422.21 million | 0.77 | -$34.00 million | ($0.96) | -3.61 |
Franklin Electric has higher revenue and earnings than NN. NN is trading at a lower price-to-earnings ratio than Franklin Electric, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.0% of Franklin Electric shares are held by institutional investors. Comparatively, 53.9% of NN shares are held by institutional investors. 2.9% of Franklin Electric shares are held by company insiders. Comparatively, 5.6% of NN shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Franklin Electric beats NN on 8 of the 15 factors compared between the two stocks.
About Franklin Electric
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.
About NN
NN, Inc., together with its subsidiaries, designs, manufactures, and sells high-precision components and assemblies for various end markets in the United States and internationally. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells system critical components for automotive, general industrial, and medical end markets for use in power steering, braking, transmissions, gasoline fuel system, diesel injection, and diesel emissions treatment applications, as well as in heating, ventilation, and air conditioning. The Power Solutions segment designs, manufactures, and sells a range of high-precision metal and plastic components, assemblies, and finished devices used in various applications, such as power control and transportation electrification. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace and defense, and medical end markets. This segment also produces various tools and instruments for the orthopaedics and medical/surgical end markets. NN, Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.
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