Spirax Group (OTCMKTS:SPXSY) versus Sumitomo Heavy (OTCMKTS:SOHVY) Critical Analysis

Spirax Group (OTCMKTS:SPXSY) and Sumitomo Heavy (OTCMKTS:SOHVY) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Spirax Group has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Sumitomo Heavy has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Profitability

This table compares Spirax Group and Sumitomo Heavy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirax Group	N/A	N/A	N/A
Sumitomo Heavy	-0.29%	3.86%	1.97%

Insider and Institutional Ownership

0.4% of Spirax Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Spirax Group and Sumitomo Heavy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirax Group	$2.13 billion	6.47	$244.34 million	N/A	N/A
Sumitomo Heavy	$7.08 billion	0.52	$50.97 million	($0.03)	-253.33

Spirax Group has higher earnings, but lower revenue than Sumitomo Heavy.

Dividends

Spirax Group pays an annual dividend of $0.53 per share and has a dividend yield of 1.1%. Sumitomo Heavy pays an annual dividend of $0.14 per share and has a dividend yield of 1.8%. Sumitomo Heavy pays out -466.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Spirax Group and Sumitomo Heavy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirax Group	0	1	0	1	3.00
Sumitomo Heavy	0	0	0	0	0.00

Summary

Spirax Group beats Sumitomo Heavy on 7 of the 12 factors compared between the two stocks.

About Spirax Group

Spirax-Sarco Engineering plc provides engineered solutions it operates through three segments: Steam Thermal Solutions; Electric Thermal Solutions; and Watson-Marlow Fluid Technology Solutions. The company offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating, curing, cooking, drying, cleaning, sterilizing, space heating, humidifying, vacuum packing, and producing hot water; electrical process heating and temperature management solutions, such as industrial heaters and systems, heat tracing, and various component technologies for industrial processes; and peristaltic and niche pumps and associated fluid path technologies, including tubing, and specialty filling systems and products for single-use applications. It serves pharmaceutical and biotechnology, food, beverage, oil, gas, chemical, power generation, healthcare, water and wastewater, buildings, mining and precious metal processing, semiconductor, and transport sectors, as well as original equipment manufacturers. The company sells its products directly, as well as through distributors. It operates in Europe, the Middle East, and Africa; the Asia Pacific; and the Americas. The company was founded in 1888 and is headquartered in Cheltenham, the United Kingdom.

About Sumitomo Heavy

Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Japan and internationally. Its Mechatronics segment offers gearmotors, gearboxes, motion control drives, motors and inverters, drive solutions, precision positioning equipment, laser systems, control systems, motion components, and collaborative robot. The company's Industrial Machinery segment provides injection molding machines, cryocoolers, ion implanters, PET tracer production systems, vacuum coasting equipment, steel tube air forming, non-destructive inspections, clean room system, cast iron and steel rolls for hot rolling, and coolant systems. Its Logistics & Construction segment offers hydraulic excavators, crawler cranes, material handing systems, parking systems, transfer molding presses, cryopumps, proton therapy systems, forging presses, lifting magnets, spinning machines, dust collectors, surface grinding machines, extrusion coating line, road machinery, foundation machines, logistics systems, and forklifts. The company's Energy & Lifelines segment provides circulating fluidized bed (CFB) boilers, liquid air energy storage, electrostatic precipitators, evaporation and crystallization facilities, waste heat boilers, CFB scrubbers, flue gas denitrification systems, industrial wastewater treatment facilities, steam turbines, distillation technology and extractors, mixing vessels, and food and beverage manufacturing facilities. This segment also offers bubbling fluidized bed boilers, rotary kiln-type recycling facilities, ash handling systems, fluidized bed gasifiers, waste-to-energy plants baghouses, digital services, water and sewage treatment systems, process pumps, reactor vessels, coke oven machines, and oils tankers. The company provides IT solutions and security services. Sumitomo Heavy Industries, Ltd. was founded in 1888 and is headquartered in Tokyo, Japan.