Miller Industries (NYSE:MLR – Get Free Report) and Kawasaki Heavy Industries (OTCMKTS:KWHIY – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares Miller Industries and Kawasaki Heavy Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Miller Industries | 1.86% | 3.41% | 2.40% |
| Kawasaki Heavy Industries | 4.74% | 13.40% | 3.49% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Miller Industries and Kawasaki Heavy Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Miller Industries | 0 | 2 | 1 | 0 | 2.33 |
| Kawasaki Heavy Industries | 0 | 2 | 0 | 0 | 2.00 |
Dividends
Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Kawasaki Heavy Industries pays an annual dividend of $0.06 per share and has a dividend yield of 0.9%. Miller Industries pays out 67.7% of its earnings in the form of a dividend. Kawasaki Heavy Industries pays out 23.1% 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. Miller Industries has increased its dividend for 2 consecutive years. Miller Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Miller Industries and Kawasaki Heavy Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Miller Industries | $790.27 million | 0.81 | $23.01 million | $1.24 | 45.40 |
| Kawasaki Heavy Industries | $15.35 billion | 1.00 | $713.84 million | $0.26 | 27.04 |
Kawasaki Heavy Industries has higher revenue and earnings than Miller Industries. Kawasaki Heavy Industries is trading at a lower price-to-earnings ratio than Miller Industries, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
79.2% of Miller Industries shares are owned by institutional investors. 4.5% of Miller Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Miller Industries has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Kawasaki Heavy Industries has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
Summary
Miller Industries beats Kawasaki Heavy Industries on 10 of the 17 factors compared between the two stocks.
About Miller Industries
Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.
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.
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