A. O. Smith (AOS) Competitors

Lincoln Electric (NASDAQ:LECO) and A. O. Smith (NYSE:AOS) are both large-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, community ranking, institutional ownership, media sentiment, earnings, dividends, profitability, valuation and risk.

Which has more risk & volatility, LECO or AOS?

Lincoln Electric has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Do institutionals & insiders hold more shares of LECO or AOS?

79.6% of Lincoln Electric shares are held by institutional investors. Comparatively, 76.1% of A. O. Smith shares are held by institutional investors. 2.6% of Lincoln Electric shares are held by insiders. Comparatively, 2.7% of A. O. Smith shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Which has stronger valuation & earnings, LECO or AOS?

A. O. Smith has lower revenue, but higher earnings than Lincoln Electric. A. O. Smith is trading at a lower price-to-earnings ratio than Lincoln Electric, 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
Lincoln Electric	$4.19B	3.08	$545.25M	$9.42	24.09
A. O. Smith	$3.85B	3.26	$556.60M	$3.86	22.20

Does the media favor LECO or AOS?

In the previous week, Lincoln Electric had 3 more articles in the media than A. O. Smith. MarketBeat recorded 12 mentions for Lincoln Electric and 9 mentions for A. O. Smith. A. O. Smith's average media sentiment score of 1.16 beat Lincoln Electric's score of 1.13 indicating that Lincoln Electric is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lincoln Electric	8 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
A. O. Smith	5 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer LECO or AOS?

Lincoln Electric currently has a consensus price target of $228.00, indicating a potential upside of 0.45%. A. O. Smith has a consensus price target of $90.67, indicating a potential upside of 5.82%. Given Lincoln Electric's higher probable upside, analysts clearly believe A. O. Smith is more favorable than Lincoln Electric.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lincoln Electric	2 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.25
A. O. Smith	0 Sell rating(s)	6 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.14

Is LECO or AOS more profitable?

A. O. Smith has a net margin of 14.94% compared to A. O. Smith's net margin of 13.23%. A. O. Smith's return on equity of 43.81% beat Lincoln Electric's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lincoln Electric	13.23%	43.81%	16.50%
A. O. Smith	14.94%	30.94%	18.06%

Is LECO or AOS a better dividend stock?

Lincoln Electric pays an annual dividend of $2.84 per share and has a dividend yield of 1.3%. A. O. Smith pays an annual dividend of $1.28 per share and has a dividend yield of 1.5%. Lincoln Electric pays out 30.1% of its earnings in the form of a dividend. A. O. Smith pays out 33.2% 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. Lincoln Electric has raised its dividend for 29 consecutive years and A. O. Smith has raised its dividend for 30 consecutive years. A. O. Smith is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community believe in LECO or AOS?

A. O. Smith received 21 more outperform votes than Lincoln Electric when rated by MarketBeat users. Likewise, 62.28% of users gave A. O. Smith an outperform vote while only 59.51% of users gave Lincoln Electric an outperform vote.

Company	Underperform	Outperform
Lincoln Electric	Outperform Votes 438 59.51%	Underperform Votes 298 40.49%
A. O. Smith	Outperform Votes 459 62.28%	Underperform Votes 278 37.72%

Summary

A. O. Smith beats Lincoln Electric on 11 of the 21 factors compared between the two stocks.