Sandvik (OTCMKTS:SDVKY – Get Free Report) and Aebi Schmidt (NASDAQ:AEBI – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for Sandvik and Aebi Schmidt, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sandvik | 1 | 6 | 5 | 0 | 2.33 |
| Aebi Schmidt | 0 | 1 | 2 | 0 | 2.67 |
Aebi Schmidt has a consensus target price of $17.00, suggesting a potential upside of 53.85%. Given Aebi Schmidt’s stronger consensus rating and higher probable upside, analysts clearly believe Aebi Schmidt is more favorable than Sandvik.
Valuation and Earnings
This table compares Sandvik and Aebi Schmidt”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sandvik | $12.34 billion | 3.54 | $1.50 billion | $1.63 | 21.37 |
| Aebi Schmidt | $1.95 billion | 0.44 | $9.74 million | $0.32 | 34.53 |
Sandvik has higher revenue and earnings than Aebi Schmidt. Sandvik is trading at a lower price-to-earnings ratio than Aebi Schmidt, indicating that it is currently the more affordable of the two stocks.
Dividends
Sandvik pays an annual dividend of $0.41 per share and has a dividend yield of 1.2%. Aebi Schmidt pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. Sandvik pays out 25.2% of its earnings in the form of a dividend. Aebi Schmidt pays out 31.2% 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. Sandvik is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Sandvik has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Aebi Schmidt has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500.
Profitability
This table compares Sandvik and Aebi Schmidt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sandvik | 13.85% | 20.30% | 11.08% |
| Aebi Schmidt | 1.09% | 2.59% | 1.04% |
Insider & Institutional Ownership
0.7% of Sandvik shares are held by institutional investors. 39.1% of Aebi Schmidt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Sandvik beats Aebi Schmidt on 11 of the 16 factors compared between the two stocks.
About Sandvik
Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It also provides metal-cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and components made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. The company serves aerospace, automotive, energy, general engineering, infrastructure, and mining industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.
About Aebi Schmidt
Aebi Schmidt Holding AG is a provider of mission-critical infrastructure, environmental and agricultural solutions. Aebi Schmidt Holding AG, formerly known as The Shyft Group Inc., is based in NOVI, Mich.
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