Head-To-Head Analysis: COMPASS GRP PLC/S (CMPGY) vs. SANDVIK AB/ADR (SDVKY)

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SANDVIK AB/ADR (OTCMKTS:SDVKY) and COMPASS GRP PLC/S (OTCMKTS:CMPGY) are both large-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

0.1% of SANDVIK AB/ADR shares are owned by institutional investors. Comparatively, 0.2% of COMPASS GRP PLC/S shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for SANDVIK AB/ADR and COMPASS GRP PLC/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SANDVIK AB/ADR 2 1 2 0 2.00
COMPASS GRP PLC/S 0 2 0 0 2.00

Profitability

This table compares SANDVIK AB/ADR and COMPASS GRP PLC/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SANDVIK AB/ADR 16.95% 25.20% 11.86%
COMPASS GRP PLC/S N/A N/A N/A

Earnings & Valuation

This table compares SANDVIK AB/ADR and COMPASS GRP PLC/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SANDVIK AB/ADR $10.66 billion 1.79 $1.54 billion $0.94 16.18
COMPASS GRP PLC/S $26.71 billion 1.30 $1.31 billion $0.91 23.91

SANDVIK AB/ADR has higher earnings, but lower revenue than COMPASS GRP PLC/S. SANDVIK AB/ADR is trading at a lower price-to-earnings ratio than COMPASS GRP PLC/S, indicating that it is currently the more affordable of the two stocks.

Dividends

SANDVIK AB/ADR pays an annual dividend of $0.35 per share and has a dividend yield of 2.3%. COMPASS GRP PLC/S pays an annual dividend of $0.29 per share and has a dividend yield of 1.3%. SANDVIK AB/ADR pays out 37.2% of its earnings in the form of a dividend. COMPASS GRP PLC/S pays out 31.9% 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.

Risk & Volatility

SANDVIK AB/ADR has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, COMPASS GRP PLC/S has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Summary

SANDVIK AB/ADR beats COMPASS GRP PLC/S on 9 of the 13 factors compared between the two stocks.

About SANDVIK AB/ADR

Sandvik AB (publ) operates as an engineering company in the areas of mining and rock excavation, metal-cutting, and materials technology worldwide. The company offers metal-cutting tools and tooling systems, including boring, drilling, milling, reaming, and turning tools, as well as tailor made tools and inserts and tooling systems; and mining and rock excavation equipment and tools, such as stationary and mobile crushers and screens, underground drill rigs and bolters, surface drill rigs, exploration drill rigs and tools, underground loaders and trucks, mechanical cutting equipment, rock tools, rock drills, mining automation systems, bulk materials handling equipment, conveyor components, and parts and services, as well as breakers, demolition tools, and booms. It also provides stainless steels, special alloys, and titanium products comprising bar and hollow bars, controlled expansion alloy products, billets and blooms, hot isostatic pressed products, metal powders, plates and sheets, strip steels, and welding and wire products, as well as tubes, pipes, fittings, and flanges. In addition, it offers diffusion furnaces, and furnace products and heating materials; cemented carbide components, and diamond and cubic boron nitride in mesh and polycrystalline forms; and steel belts and processing systems. The company serves aerospace, automotive, construction, consumer goods, general engineering, nuclear power generation, oil and gas, process, and renewable energy industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.

About COMPASS GRP PLC/S

Compass Group PLC, through its subsidiaries, operates as a food and support services company in North America, Europe, and internationally. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. The company also offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

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