WESCO International (NYSE: WCC) and Applied Industrial Technologies (NYSE:AIT) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.
This table compares WESCO International and Applied Industrial Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Applied Industrial Technologies||1.31%||15.34%||7.84%|
Insider and Institutional Ownership
89.3% of Applied Industrial Technologies shares are held by institutional investors. 3.0% of WESCO International shares are held by insiders. Comparatively, 4.4% of Applied Industrial Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for WESCO International and Applied Industrial Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Applied Industrial Technologies||0||1||0||0||2.00|
WESCO International presently has a consensus target price of $70.73, suggesting a potential upside of 21.94%. Given WESCO International’s stronger consensus rating and higher probable upside, research analysts clearly believe WESCO International is more favorable than Applied Industrial Technologies.
Applied Industrial Technologies pays an annual dividend of $1.16 per share and has a dividend yield of 1.9%. WESCO International does not pay a dividend. Applied Industrial Technologies pays out 139.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Applied Industrial Technologies has increased its dividend for 7 consecutive years.
Valuation and Earnings
This table compares WESCO International and Applied Industrial Technologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WESCO International||$7.33 billion||0.39||$385.49 million||$2.10||27.62|
|Applied Industrial Technologies||$2.55 billion||0.93||$208.18 million||$0.83||73.37|
WESCO International has higher revenue and earnings than Applied Industrial Technologies. WESCO International 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.
Risk and Volatility
WESCO International has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
WESCO International beats Applied Industrial Technologies on 10 of the 17 factors compared between the two stocks.
WESCO International Company Profile
WESCO International, Inc. is a distributor of products and provider of supply chain management and logistics services used in industrial, construction, utility and commercial, institutional and government (CIG) markets. The Company is a provider of electrical, industrial and communications maintenance, repair and operating (MRO) and original equipment manufacturers (OEM) products, construction materials, and supply chain management and logistics services. Its product categories include general supplies, wire, cable and conduit, communications and security, electrical distribution and controls, lighting and sustainability, and automation, controls and motors. The Company provides customers a portfolio of solutions within a range of service categories, including construction, e-commerce, energy and sustainability, engineering services, production support, safety and security, supply chain optimization, training and working capital.
Applied Industrial Technologies Company Profile
Applied Industrial Technologies, Inc. is an industrial distributor in North America, Australia and New Zealand, serving maintenance, repair and operations (MRO), and original equipment manufacturing customers in various industries. In addition, the Company provides engineering, design, and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber, and fluid power shop services. It operates in two segments: service center-based distribution and fluid power businesses. The service center-based distribution segment provides customers with a range of industrial products primarily through a network of service centers. The fluid power businesses segment consists of specialized regional companies that distribute fluid power components, design and assemble fluid power systems, and perform equipment repair. The fluid power businesses primarily sell products and services directly to customers rather than through the service centers.
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