Contrasting Wartsila (OTCMKTS:WRTBY) & Fanuc (OTCMKTS:FANUY)

Wartsila (OTCMKTS:WRTBY) and Fanuc (OTCMKTS:FANUY) are both large-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

1.5% of Fanuc shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Wartsila and Fanuc”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wartsila	$7.82 billion	2.16	$708.26 million	$0.24	23.83
Fanuc	$5.70 billion	5.92	$1.10 billion	$0.68	25.26

Fanuc has lower revenue, but higher earnings than Wartsila. Wartsila is trading at a lower price-to-earnings ratio than Fanuc, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Wartsila has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Fanuc has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares Wartsila and Fanuc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wartsila	9.12%	25.16%	7.81%
Fanuc	21.53%	10.47%	9.42%

Analyst Ratings

This is a summary of recent recommendations and price targets for Wartsila and Fanuc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wartsila	3	2	2	0	1.86
Fanuc	0	2	0	1	2.67

Dividends

Wartsila pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Fanuc pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Wartsila pays out 16.7% of its earnings in the form of a dividend. Fanuc pays out 29.4% 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.

Summary

Fanuc beats Wartsila on 11 of the 15 factors compared between the two stocks.

About Wartsila

Wärtsilä is a Finnish technology company that provides equipment, systems and services for the marine and energy markets. Its marine offerings include engines, propulsion systems, power solutions and digital technologies, alongside maintenance and lifecycle services for vessels and shipowners. In the energy sector, Wärtsilä supplies power plants and energy storage solutions, as well as software and services for operating and optimizing energy systems. Its technologies support electricity generation and grid balancing, including the integration of renewable energy.

About Fanuc

FANUC Corporation is a Japan-based provider of factory automation equipment and services. Its products include computer numerical control (CNC) systems and machine tools, industrial robots, and automation systems used in manufacturing. The company also makes ROBOMACHINE products, including machining centers, electric injection molding machines, and wire electrical discharge machining equipment. FANUC provides related software, maintenance, and support services to help customers automate production processes.