Kawasaki Heavy Industries (OTCMKTS:KWHIY – Get Free Report) and Luxfer (NYSE:LXFR – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Volatility and Risk
Kawasaki Heavy Industries has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Luxfer has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Kawasaki Heavy Industries and Luxfer, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kawasaki Heavy Industries | 0 | 3 | 0 | 0 | 2.00 |
| Luxfer | 0 | 1 | 0 | 2 | 3.33 |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kawasaki Heavy Industries | $15.35 billion | 1.08 | $718.49 million | $0.35 | 22.54 |
| Luxfer | $384.60 million | 1.20 | $7.70 million | $0.22 | 77.67 |
Kawasaki Heavy Industries has higher revenue and earnings than Luxfer. Kawasaki Heavy Industries is trading at a lower price-to-earnings ratio than Luxfer, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
90.8% of Luxfer shares are held by institutional investors. 1.2% of Luxfer shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Kawasaki Heavy Industries pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Kawasaki Heavy Industries pays out 5.7% of its earnings in the form of a dividend. Luxfer pays out 236.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Kawasaki Heavy Industries and Luxfer’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kawasaki Heavy Industries | 4.74% | 13.40% | 3.49% |
| Luxfer | 1.56% | 12.14% | 7.25% |
Summary
Luxfer beats Kawasaki Heavy Industries on 9 of the 15 factors compared between the two stocks.
About Kawasaki Heavy Industries
Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.
About Luxfer
Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.
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