Dover Story

DOV -- USA Stock

USD 124.28 1.22 0.97%

Macroaxis Story

As many rational traders are trying to avoid industrials space, it makes sense to focus on Dover a little further and understand how it stands against Crane and other similar entities. We are going to recap some of the competitive aspects of both Dover and Crane.

Published over three weeks ago

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Will Dover (NYSE:DOV) shadow Crane price gain?

By analyzing existing basic indicators between Dover and Crane, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Crane with a short position in Dover. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dover has an asset utilization ratio of 77.62 percent. This indicates that the company is making $0.78 for each dollar of assets. An increasing asset utilization means that Dover is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Dover or Crane is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Dover Corp dividends

A dividend is the distribution of a portion of Dover Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Dover Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Dover one year expected dividend income is about $0.97 per share.

Dover Corp Dividend Yield is fairly stable at the moment as compared to the past year. Dover Corp reported Dividend Yield of 0.016 in 2020. Dividends per Basic Common Share is likely to climb to 2.02 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (306.8 M) in 2021.

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-284.3 M	-306.8 M
Dividend Yield	0.016	0.0164
Dividends per Basic Common Share	1.97	2.02

Investing in dividend-paying stocks, such as Dover Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Dover Corp must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Dover Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Dover Corp's Liquidity

Dover Corp financial leverage refers to using borrowed capital as a funding source to finance Dover Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dover Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Dover Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Dover Corp, but it might be worth checking our own buy vs. sell analysis

Correlation Between Dover and Crane Company

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Dover Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Crane to your portfolio. If Crane is not perfectly correlated to Dover Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Dover Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between DOV and CR for more information.

Note

Are you currently holding both Dover Corp and Crane in your portfolio?

Please note if you are using this as a pair-trade strategy between Dover Corp and Crane, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Dover revenue. Based on the latest financial disclosure, Dover reported 6.68 B of revenue. This is 90.93% higher than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 29.2% higher than that of Dover. As for Crane we see revenue of 3.05 B, which is much higher than that of the Specialty Industrial Machinery

	Dover	6.68 Billion
	Sector	0.0
	Crane	3.05 Billion

6.7 B

Dover

Sector

3 B

Crane

Dover has a fair chance to close above $120 mark in February

Dover latest downside variance rises over 2.15. Dover has relatively low volatility with skewness of 0.1 and kurtosis of 0.5. However, we advise all investors to independently investigate Dover to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Dover

While some other firms in the specialty industrial machinery industry are either recovering or due for a correction, Dover may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 28th of January 2021, our primary 30 days Buy-Hold-Sell recommendation on the venture is Strong Hold. We believe Dover is fairly valued with low probability of bankruptcy for the next two years.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Dover Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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