Donaldson (DCI) Competitors

Donaldson (NYSE:DCI) and Xylem (NYSE:XYL) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, community ranking, media sentiment, analyst recommendations, profitability, institutional ownership and earnings.

Which has better valuation and earnings, DCI or XYL?

Xylem has higher revenue and earnings than Donaldson. Donaldson is trading at a lower price-to-earnings ratio than Xylem, 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
Donaldson	$3.59B	2.37	$414M	$3.44	20.69
Xylem	$8.42B	3.46	$609M	$3.42	35.04

Is DCI or XYL more profitable?

Donaldson has a net margin of 11.56% compared to Xylem's net margin of 9.85%. Donaldson's return on equity of 29.07% beat Xylem's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Donaldson	11.56%	29.07%	14.76%
Xylem	9.85%	9.61%	6.22%

Does the MarketBeat Community believe in DCI or XYL?

Xylem received 52 more outperform votes than Donaldson when rated by MarketBeat users. However, 64.76% of users gave Donaldson an outperform vote while only 63.23% of users gave Xylem an outperform vote.

Company	Underperform	Outperform
Donaldson	Outperform Votes 476 64.76%	Underperform Votes 259 35.24%
Xylem	Outperform Votes 528 63.23%	Underperform Votes 307 36.77%

Do analysts rate DCI or XYL?

Donaldson currently has a consensus price target of $74.00, suggesting a potential upside of 3.97%. Xylem has a consensus price target of $152.10, suggesting a potential upside of 26.92%. Given Xylem's stronger consensus rating and higher probable upside, analysts plainly believe Xylem is more favorable than Donaldson.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donaldson	1 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00
Xylem	0 Sell rating(s)	3 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.73

Do insiders and institutionals have more ownership in DCI or XYL?

82.8% of Donaldson shares are owned by institutional investors. Comparatively, 88.0% of Xylem shares are owned by institutional investors. 2.7% of Donaldson shares are owned by company insiders. Comparatively, 0.3% of Xylem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Which has more volatility and risk, DCI or XYL?

Donaldson has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Xylem has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Does the media favor DCI or XYL?

In the previous week, Xylem had 10 more articles in the media than Donaldson. MarketBeat recorded 17 mentions for Xylem and 7 mentions for Donaldson. Donaldson's average media sentiment score of 1.22 beat Xylem's score of 1.05 indicating that Donaldson is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Donaldson	5 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Xylem	14 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is DCI or XYL a better dividend stock?

Donaldson pays an annual dividend of $1.08 per share and has a dividend yield of 1.5%. Xylem pays an annual dividend of $1.44 per share and has a dividend yield of 1.2%. Donaldson pays out 31.4% of its earnings in the form of a dividend. Xylem pays out 42.1% 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. Donaldson has raised its dividend for 38 consecutive years. Donaldson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Donaldson and Xylem tied by winning 10 of the 20 factors compared between the two stocks.