Badger Meter (NYSE:BMI – Get Free Report) and AMETEK (NYSE:AME – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Badger Meter and AMETEK’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Badger Meter | 14.27% | 18.03% | 12.82% |
| AMETEK | 20.04% | 16.93% | 11.26% |
Valuation & Earnings
This table compares Badger Meter and AMETEK”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Badger Meter | $916.66 million | 4.18 | $141.63 million | $4.28 | 30.86 |
| AMETEK | $7.86 billion | 6.95 | $1.48 billion | $6.84 | 34.86 |
AMETEK has higher revenue and earnings than Badger Meter. Badger Meter is trading at a lower price-to-earnings ratio than AMETEK, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Badger Meter and AMETEK, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Badger Meter | 1 | 5 | 5 | 0 | 2.36 |
| AMETEK | 0 | 5 | 10 | 1 | 2.75 |
Badger Meter currently has a consensus target price of $164.00, indicating a potential upside of 24.16%. AMETEK has a consensus target price of $266.80, indicating a potential upside of 11.90%. Given Badger Meter’s higher possible upside, equities research analysts plainly believe Badger Meter is more favorable than AMETEK.
Volatility and Risk
Badger Meter has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, AMETEK has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Dividends
Badger Meter pays an annual dividend of $1.60 per share and has a dividend yield of 1.2%. AMETEK pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Badger Meter pays out 37.4% of its earnings in the form of a dividend. AMETEK pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Badger Meter has raised its dividend for 32 consecutive years and AMETEK has raised its dividend for 6 consecutive years. Badger Meter is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
89.0% of Badger Meter shares are held by institutional investors. Comparatively, 87.4% of AMETEK shares are held by institutional investors. 1.0% of Badger Meter shares are held by insiders. Comparatively, 0.5% of AMETEK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
AMETEK beats Badger Meter on 11 of the 18 factors compared between the two stocks.
About Badger Meter
Badger Meter, Inc. manufactures and markets flow measurement, quality, control, and communication solutions worldwide. It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities market. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives. In addition, the company offers ORION Cellular endpoints to power network as a service; ORION mobile read endpoints support for deploying AMR solution; radio products; hardware, instruments, and sensors, and related software, to enhance connected data to a water utility's operation; water quality monitoring solutions, including optical sensing and electrochemical instruments; and high frequency pressure and leak detection sensors to aid in burst pipe and leak events; as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. The company serves water utilities, commercial, and industrial industries; and provides training, project management, technical support, and other collaborative services for customers. It sells its products and software directly, as well as through resellers and representatives. The company was incorporated in 1905 and is based in Milwaukee, Wisconsin.
About AMETEK
AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets; power quality monitoring and c devices, uninterruptible power supplies, programmable power and electromagnetic compatibility test equipment, and sensors for gas turbines and dashboard instruments; heavy trucks, instrumentation, and controls for the food and beverage industries; and aircraft and engine sensors, power supplies, embedded computing, monitoring, fuel and fluid measurement, and data acquisition systems for aerospace and defense industry. Its EMG segment offers engineered medical components and devices, automation solutions, thermal management systems, specialty metals, and electrical interconnects; single-use and consumable surgical instruments, implantable components, and drug delivery systems; engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, and automation; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for thermal management, military and commercial aircraft, and military ground vehicles; motors for commercial appliances, food and beverage machines, hydraulic pumps, and industrial blowers; and operates a network of aviation maintenance, repair, and overhaul facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.
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