Trimble (NASDAQ:TRMB – Get Free Report) and Flowserve (NYSE:FLS – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Trimble and Flowserve’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% |
| Flowserve | 9.66% | 19.41% | 7.58% |
Earnings and Valuation
This table compares Trimble and Flowserve”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trimble | $3.68 billion | 5.12 | $1.50 billion | $1.46 | 54.29 |
| Flowserve | $4.56 billion | 2.02 | $282.76 million | $3.44 | 21.08 |
Trimble has higher earnings, but lower revenue than Flowserve. Flowserve 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 held by institutional investors. Comparatively, 93.9% of Flowserve shares are held by institutional investors. 0.5% of Trimble shares are held by insiders. Comparatively, 0.7% of Flowserve shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Trimble has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Flowserve has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Trimble and Flowserve, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trimble | 0 | 2 | 7 | 2 | 3.00 |
| Flowserve | 0 | 3 | 10 | 1 | 2.86 |
Trimble currently has a consensus price target of $96.67, indicating a potential upside of 21.95%. Flowserve has a consensus price target of $78.60, indicating a potential upside of 8.40%. Given Trimble’s stronger consensus rating and higher probable upside, equities analysts plainly believe Trimble is more favorable than Flowserve.
Summary
Trimble beats Flowserve on 8 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 Flowserve
Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets. The FCD segment provides engineered and industrial valve and automation systems, including isolation and control valves, actuation, controls, and related equipment; and equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and multi-phase fluids. It primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was founded in 1790 and is headquartered in Irving, Texas.
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