Financial Survey: Veralto (NYSE:VLTO) vs. Sims Metal Management (OTCMKTS:SMSMY)

Sims Metal Management (OTCMKTS:SMSMY) and Veralto (NYSE:VLTO) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Dividends

Sims Metal Management pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. Veralto pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. Veralto pays out 14.2% of its earnings in the form of a dividend. Veralto has raised its dividend for 1 consecutive years.

Profitability

This table compares Sims Metal Management and Veralto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sims Metal Management	N/A	N/A	N/A
Veralto	16.75%	38.69%	13.80%

Insider & Institutional Ownership

91.3% of Veralto shares are owned by institutional investors. 0.4% of Veralto shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Sims Metal Management and Veralto”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sims Metal Management	$4.85 billion	0.57	-$12.30 million	N/A	N/A
Veralto	$5.19 billion	4.69	$833.00 million	$3.65	26.89

Veralto has higher revenue and earnings than Sims Metal Management.

Analyst Recommendations

This is a summary of current recommendations for Sims Metal Management and Veralto, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sims Metal Management	1	0	0	0	1.00
Veralto	0	7	5	0	2.42

Veralto has a consensus price target of $112.89, indicating a potential upside of 15.02%. Given Veralto’s stronger consensus rating and higher possible upside, analysts plainly believe Veralto is more favorable than Sims Metal Management.

Risk & Volatility

Sims Metal Management has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Veralto has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Summary

Veralto beats Sims Metal Management on 12 of the 15 factors compared between the two stocks.

About Sims Metal Management

Sims Limited engages in buying, processing, and selling ferrous and non-ferrous recycled metals in Australia, Bangladesh, China, Turkey, the United States, and internationally. The company operates through six segments: North America Metals, Investment in SA Recycling, Australia/New Zealand Metals, UK Metals, Global Trading, and Sims Lifecycle Services. It is involved in the collection, processing, and trading of iron and steel secondary raw materials; and other metal alloys and residues, principally aluminum, lead, copper, zinc, and nickel bearing materials. The company also engages in the provision of environmentally responsible solutions for the disposal of post-consumer electronic products, such as information technology assets recycled for commercial customers; and environmentally responsible recycling of negative value materials, including electronic equipment. In addition, it provides secondary processing and other services comprising recycling of municipal curbside materials, stevedoring, and other sources of service. The company was founded in 1917 and is headquartered in Mascot, Australia.

About Veralto

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers inline printing solutions for products and packaging with marking and coding systems; marking and coding for packaged goods and related consumables; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; color standard services for the design industry; and a software solution that provides digital asset management, marketing resource management, and product information management. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands to regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.