GEA Group Aktiengesellschaft (OTCMKTS: OUTKY) and OUTOKUMPU OYJ/ADR (OTCMKTS:OUTKY) are both mid-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Volatility & Risk
GEA Group Aktiengesellschaft has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, OUTOKUMPU OYJ/ADR has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500.
0.1% of GEA Group Aktiengesellschaft shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares GEA Group Aktiengesellschaft and OUTOKUMPU OYJ/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GEA Group Aktiengesellschaft||$5.20 billion||1.34||$274.97 million||$1.39||26.12|
|OUTOKUMPU OYJ/ADR||$7.19 billion||0.32||$443.07 million||$1.02||2.70|
OUTOKUMPU OYJ/ADR has higher revenue and earnings than GEA Group Aktiengesellschaft. OUTOKUMPU OYJ/ADR is trading at a lower price-to-earnings ratio than GEA Group Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for GEA Group Aktiengesellschaft and OUTOKUMPU OYJ/ADR, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GEA Group Aktiengesellschaft||0||0||0||0||N/A|
This table compares GEA Group Aktiengesellschaft and OUTOKUMPU OYJ/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GEA Group Aktiengesellschaft||4.21%||7.98%||3.42%|
GEA Group Aktiengesellschaft pays an annual dividend of $1.02 per share and has a dividend yield of 2.8%. OUTOKUMPU OYJ/ADR pays an annual dividend of $0.13 per share and has a dividend yield of 4.7%. GEA Group Aktiengesellschaft pays out 73.4% of its earnings in the form of a dividend. OUTOKUMPU OYJ/ADR pays out 12.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OUTOKUMPU OYJ/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.
GEA Group Aktiengesellschaft beats OUTOKUMPU OYJ/ADR on 8 of the 12 factors compared between the two stocks.
GEA Group Aktiengesellschaft Company Profile
GEA Group Aktiengesellschaft focuses on the development and production of process technology and components for the food processing industry worldwide. It operates in two segments, Business Area Equipment and Business Area Solutions. The Business Area Equipment segment offers separators, valves, pumps, homogenizers, and refrigeration compressors, as well as process technology solutions for food processing and packaging applications; and dairy equipment, feeding systems, and slurry engineering solutions. The Business Area Solutions segment provides process solutions for the food and beverages, pharma, and chemical industries. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.
OUTOKUMPU OYJ/ADR Company Profile
Outokumpu Oyj produces and sells various stainless steel products in Finland, Germany, Sweden, the United Kingdom, other European countries, Asia and Oceania, and internationally. The company provides stainless steel bars, coils and sheets, steel precision strips, rebars, and wire rods; and semi-finished products, such as cast billets and blooms, cast slabs, stainless steel ingots, and rolled and forged billets, as well as pipes. Its products are used in various applications, including architecture, building, and infrastructure; automotive and transportation; catering, food, and beverage; home appliances; and energy and heavy industries. The company is headquartered in Helsinki, Finland.
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