A. O. Smith (AOS) Competitors

Applied Industrial Technologies (NYSE:AIT) and A. O. Smith (NYSE:AOS) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, media sentiment, profitability, valuation and institutional ownership.

Does the media prefer AIT or AOS?

In the previous week, A. O. Smith had 36 more articles in the media than Applied Industrial Technologies. MarketBeat recorded 46 mentions for A. O. Smith and 10 mentions for Applied Industrial Technologies. Applied Industrial Technologies' average media sentiment score of 1.24 beat A. O. Smith's score of 0.85 indicating that Applied Industrial Technologies is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Industrial Technologies	7 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
A. O. Smith	19 Very Positive mention(s)	5 Positive mention(s)	12 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, AIT or AOS?

Applied Industrial Technologies has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Is AIT or AOS a better dividend stock?

Applied Industrial Technologies pays an annual dividend of $1.84 per share and has a dividend yield of 0.7%. A. O. Smith pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. Applied Industrial Technologies pays out 18.5% of its earnings in the form of a dividend. A. O. Smith pays out 37.9% 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. Applied Industrial Technologies has increased its dividend for 16 consecutive years and A. O. Smith has increased its dividend for 31 consecutive years. A. O. Smith is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has higher earnings and valuation, AIT or AOS?

A. O. Smith has lower revenue, but higher earnings than Applied Industrial Technologies. A. O. Smith is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Industrial Technologies	$4.50B	2.24	$385.76M	$9.96	26.52
A. O. Smith	$3.82B	2.58	$533.60M	$3.59	19.61

Do insiders & institutionals have more ownership in AIT or AOS?

93.5% of Applied Industrial Technologies shares are held by institutional investors. Comparatively, 76.1% of A. O. Smith shares are held by institutional investors. 1.7% of Applied Industrial Technologies shares are held by company insiders. Comparatively, 0.8% of A. O. Smith shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Is AIT or AOS more profitable?

A. O. Smith has a net margin of 13.68% compared to Applied Industrial Technologies' net margin of 8.64%. A. O. Smith's return on equity of 28.42% beat Applied Industrial Technologies' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Industrial Technologies	8.64%	22.01%	12.83%
A. O. Smith	13.68%	28.42%	16.52%

Do analysts recommend AIT or AOS?

Applied Industrial Technologies presently has a consensus target price of $285.00, indicating a potential upside of 7.91%. A. O. Smith has a consensus target price of $77.43, indicating a potential upside of 9.97%. Given A. O. Smith's higher possible upside, analysts plainly believe A. O. Smith is more favorable than Applied Industrial Technologies.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Industrial Technologies	0 Sell rating(s)	0 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	3.00
A. O. Smith	0 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.29

Summary

A. O. Smith beats Applied Industrial Technologies on 10 of the 19 factors compared between the two stocks.