Graham (GHM) versus Komatsu (KMTUY) Head to Head Contrast
Graham (NYSE: GHM) and Komatsu (OTCMKTS:KMTUY) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.
Volatility and Risk
Graham has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Komatsu has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Graham pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Komatsu pays an annual dividend of $0.48 per share and has a dividend yield of 1.4%. Graham pays out -39.6% of its earnings in the form of a dividend. Komatsu pays out 28.4% 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. Graham is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Graham and Komatsu’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Graham||$91.77 million||2.33||$5.02 million||($0.91)||-24.02|
|Komatsu||$16.68 billion||1.90||$1.05 billion||$1.69||19.88|
Komatsu has higher revenue and earnings than Graham. Graham is trading at a lower price-to-earnings ratio than Komatsu, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Graham and Komatsu, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
77.3% of Graham shares are held by institutional investors. Comparatively, 0.2% of Komatsu shares are held by institutional investors. 3.3% of Graham shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Graham and Komatsu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Komatsu beats Graham on 7 of the 13 factors compared between the two stocks.
Graham Corporation designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. The Company designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. It is a nuclear code accredited fabrication and specialty machining company. It supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Its equipment is found in applications, such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. For the defense industry, its equipment is used in nuclear propulsion power systems for the United States Navy. The Company’s products are used in a range of industrial process applications in energy markets, including petroleum refining, defense, chemical and petrochemical processing, power generation/alternative energy and other.
Komatsu Ltd. is a provider of industrial-use products and services. The Company is engaged in the business of construction and mining equipment, industrial machinery and vehicles, logistics, electronics and other solutions-based operations. Its DANTOTSU service includes KOMTRAX, which is a machine tracking system whose terminals are installed on construction equipment to transmit information concerning the location, cumulative hours of operation and operating condition of vehicles, and KOMTRAX Plus, which is used in mining. Its DANTOTSU solutions include Autonomous Haulage System (AHS); intelligent Machine Control equipped; SMARTCONSTRUCTION, and intelligent Machine Control Hydraulic Excavators. Its other products include Forest Machines; Forklift Trucks; Diesel Engine Generators; large press system, and medium sized and small presses; Sheet-metal Machinery; Machine Tools; Excimer Lasers, and Thermoelectric modules and Temperature-control equipment for semiconductor manufacturing.
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