Critical Survey: DNOW (NYSE:DNOW) versus Trimble (NASDAQ:TRMB)

Trimble (NASDAQ:TRMB) and DNOW (NYSE:DNOW) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Trimble and DNOW, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trimble	0	1	9	3	3.15
DNOW	0	2	2	0	2.50

Trimble currently has a consensus target price of $94.18, indicating a potential upside of 15.65%. DNOW has a consensus target price of $17.00, indicating a potential upside of 21.81%. Given DNOW’s higher possible upside, analysts plainly believe DNOW is more favorable than Trimble.

Volatility and Risk

Trimble has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, DNOW has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares Trimble and DNOW”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trimble	$3.68 billion	5.26	$1.50 billion	$1.46	55.78
DNOW	$2.37 billion	0.62	$81.00 million	$0.87	16.04

Trimble has higher revenue and earnings than DNOW. DNOW is trading at a lower price-to-earnings ratio than Trimble, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

93.2% of Trimble shares are owned by institutional investors. Comparatively, 97.6% of DNOW shares are owned by institutional investors. 0.5% of Trimble shares are owned by insiders. Comparatively, 2.7% of DNOW shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Trimble and DNOW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trimble	9.93%	10.73%	6.65%
DNOW	3.91%	9.35%	6.55%

Summary

Trimble beats DNOW on 12 of the 15 factors compared between the two stocks.

About Trimble

Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for project design and visualization; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades. Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Westminster, Colorado.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.