Veralto (VLTO) and Its Peers Financial Comparison

Veralto (NYSE:VLTO) is one of 354 public companies in the “Commercial Services & Supplies” industry, but how does it compare to its competitors? We will compare Veralto to similar companies based on the strength of its risk, dividends, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Dividends

Veralto pays an annual dividend of $0.52 per share and has a dividend yield of 0.4%. Veralto pays out 12.9% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 67.6% of their earnings in the form of a dividend. Veralto has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares Veralto and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Veralto	$5.50 billion	$940.00 million	28.79
Veralto Competitors	$2.46 billion	$140.58 million	14.35

Veralto has higher revenue and earnings than its competitors. Veralto is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Veralto and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veralto	17.35%	34.76%	13.38%
Veralto Competitors	-67.39%	-119.20%	-1.35%

Risk & Volatility

Veralto has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Veralto’s competitors have a beta of 2.42, meaning that their average stock price is 142% more volatile than the S&P 500.

Insider & Institutional Ownership

91.3% of Veralto shares are owned by institutional investors. Comparatively, 39.5% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 0.4% of Veralto shares are owned by company insiders. Comparatively, 16.9% of shares of all “Commercial Services & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Veralto and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veralto	0	3	7	0	2.70
Veralto Competitors	1899	6238	9019	662	2.47

Veralto presently has a consensus price target of $120.70, suggesting a potential upside of 3.77%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.16%. Given Veralto’s competitors higher possible upside, analysts clearly believe Veralto has less favorable growth aspects than its competitors.

Summary

Veralto beats its competitors on 10 of the 15 factors compared.

Veralto Company Profile

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers inline printing solutions for products and packaging with marking and coding systems; marking and coding for packaged goods and related consumables; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; color standard services for the design industry; and a software solution that provides digital asset management, marketing resource management, and product information management. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands to regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.