IHI (OTCMKTS:IHICY – Get Free Report) and GEA Group Aktiengesellschaft (OTCMKTS:GEAGY – 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 earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Analyst Recommendations
This is a breakdown of recent recommendations for IHI and GEA Group Aktiengesellschaft, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IHI | 0 | 1 | 0 | 0 | 2.00 |
| GEA Group Aktiengesellschaft | 0 | 1 | 1 | 0 | 2.50 |
Earnings and Valuation
This table compares IHI and GEA Group Aktiengesellschaft”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IHI | $10.92 billion | 1.47 | $1.06 billion | $1.03 | 14.36 |
| GEA Group Aktiengesellschaft | $5.47 billion | 1.34 | -$191.04 million | ($1.16) | -34.99 |
IHI has higher revenue and earnings than GEA Group Aktiengesellschaft. GEA Group Aktiengesellschaft is trading at a lower price-to-earnings ratio than IHI, indicating that it is currently the more affordable of the two stocks.
Dividends
IHI pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. GEA Group Aktiengesellschaft pays an annual dividend of $0.93 per share and has a dividend yield of 2.3%. IHI pays out 6.8% of its earnings in the form of a dividend. GEA Group Aktiengesellschaft pays out -80.2% 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. GEA Group Aktiengesellschaft is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
IHI has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, GEA Group Aktiengesellschaft has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Profitability
This table compares IHI and GEA Group Aktiengesellschaft’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IHI | N/A | N/A | N/A |
| GEA Group Aktiengesellschaft | -3.20% | -7.43% | -2.78% |
Institutional & Insider Ownership
0.3% of GEA Group Aktiengesellschaft shares are held 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.
Summary
IHI beats GEA Group Aktiengesellschaft on 7 of the 13 factors compared between the two stocks.
About IHI
IHI Corporation designs and builds engineering solutions in Japan and internationally. The company operates through four segments: Resources, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; and Aero Engine, Space and Defense. The company engages in the manufacturing, sale, and provision of services related to power systems plants for land use and power systems for chips; carbon solutions comprising boilers and storage facilities; components for nuclear power plants; bridges and water gates, transport systems, shield systems, and concrete construction materials; vehicular turbochargers, parking, heat treatment and surface engineering; transport machineries; logistics and industrial systems; and rotating machineries comprising compressors, separation systems, and turbochargers for ships. It also offers 3D laser radars, X-ray inspection systems, monitoring equipment, oil leak monitors, vibration control systems and seismic isolation floor systems, and disaster prevention equipment; environmental monitoring; cryogenic products, material handling systems, steelmaking equipment, pulp and paper machinery, agricultural machinery, life associated equipment; aero engines; rocket, space utilization, defense, and traffic control systems; and communication, electronic, electric measuring, information processing machines, and other instruments and equipment. In addition, the company sells and rents real estate. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.
About GEA Group Aktiengesellschaft
GEA Group Aktiengesellschaft engages in the development and production of systems 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 dairy, food, beverage, pharma, and chemical industries. The company was formerly known as mg technologies ag and changed its name to GEA Group Aktiengesellschaft in 2005. The company has a strategic partnership with SAP SE. GEA Group Aktiengesellschaft was founded in 1881 and is headquartered in Düsseldorf, Germany.
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