WARTSILA OYJ/ADR (OTCMKTS: SOHVY) and SUMITOMO HEAVY/ADR (OTCMKTS:SOHVY) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares WARTSILA OYJ/ADR and SUMITOMO HEAVY/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WARTSILA OYJ/ADR 7.78% 17.45% 7.14%
SUMITOMO HEAVY/ADR N/A N/A N/A

Risk & Volatility

WARTSILA OYJ/ADR has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, SUMITOMO HEAVY/ADR has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Dividends

WARTSILA OYJ/ADR pays an annual dividend of $0.15 per share and has a dividend yield of 3.7%. SUMITOMO HEAVY/ADR pays an annual dividend of $0.34 per share and has a dividend yield of 4.2%. WARTSILA OYJ/ADR pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SUMITOMO HEAVY/ADR pays out 51.5% of its earnings in the form of a dividend. SUMITOMO HEAVY/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for WARTSILA OYJ/ADR and SUMITOMO HEAVY/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WARTSILA OYJ/ADR 0 0 0 0 N/A
SUMITOMO HEAVY/ADR 0 0 0 0 N/A

Earnings and Valuation

This table compares WARTSILA OYJ/ADR and SUMITOMO HEAVY/ADR’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WARTSILA OYJ/ADR $5.56 billion 2.18 $434.03 million $0.15 27.27
SUMITOMO HEAVY/ADR $7.14 billion 0.55 $324.47 million $0.66 12.17

WARTSILA OYJ/ADR has higher earnings, but lower revenue than SUMITOMO HEAVY/ADR. SUMITOMO HEAVY/ADR is trading at a lower price-to-earnings ratio than WARTSILA OYJ/ADR, indicating that it is currently the more affordable of the two stocks.

Summary

WARTSILA OYJ/ADR beats SUMITOMO HEAVY/ADR on 7 of the 11 factors compared between the two stocks.

WARTSILA OYJ/ADR Company Profile

Wärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide. The company offers gas, multi-fuel, and liquid fuel power plants; and seals, bearings, and related equipment for the hydropower and tidal, and a range of industrial sectors. It also provides ballast water management systems; seismic, rig tensioning, CNG, and high pressure air and gas compressors; communication, and safety and security systems; and automation, dredge control and monitoring, integrated bridge control, and measurement and control technologies. It also provides electric propulsion and drives; power generation and distribution systems; navigation, automation, and communication systems; dynamic positioning, safety, and security solutions; and entertainment systems. In addition, the company offers dual fuel, diesel, and low-speed engines, as well as generating sets and auxiliary systems; architectural lighting, audio, broadcast, digital signage, dynamic lighting, and LED display systems; exhaust gas cleaning systems; single stage desalination systems and multi stage flash evaporators; and gas cargo handling, gas recovery, LNG, fuel gas handling, and tank control systems. Further, it provides inert gas systems; hybrid and integrated solutions; gears, propellers, propulsion control systems, rudders, thrusters, and waterjets; shaft generator and shore connection systems; centrifugal, deepwell, firefight, seawater lift, and gas fuel pumps, as well as pump room systems and valves; sonars and naval acoustics; and wet and dry products, as well as designs ferry, fishing, merchant, offshore, tug, and other vessels. Additionally, the company offers electrical and automation, 2 and 4-stroke engine, environmental, seal and bearing, hydro and tidal, industrial, propulsion, and other services. It serves merchant, offshore, cruise and ferry, special vessel, and navy segments. The company was founded in 1834 and is headquartered in Helsinki, Finland.

SUMITOMO HEAVY/ADR Company Profile

Sumitomo Heavy Industries, Ltd. develops, manufactures, and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Asia, Europe, and the United States. Its Machinery Components segment offers power transmission and control equipment, including drives, compact gear motors, motion control drives, and gearboxes. The company's Precision Machinery segment provides injection molding machines, transfer molding presses, cryocoolers, cryopumps, precision positioning equipment, laser annealing machines, laser drills, control systems, motion components, ion implanters, rolls for metal rolling, surface grinding machines, coolant systems, and extrusion coating lines for smartphone and semiconductor manufacturing industries. Its Construction Machinery segment offers hydraulic excavators and road machinery. The company's Industrial Machinery offers cyclotrons for positron emission tomography, positron emission tomography tracer production systems, proton therapy systems, vacuum coating equipment, forging presses, lifting magnets, steam turbines, process pumps, material handling systems, logistics systems, parking systems, non-destructive inspections, and forklifts. Its Ships segment provides oil tankers. The company's Environmental Facilities & Plants segment offers circulating fluidized bed boilers, rotary kiln-type recycling facilities, electrostatic precipitators, evaporation and crystallization facilities, spinning machines, clean room systems, dust collectors, distillation and extraction plants, reactor vessels, mixing vessels, industrial waste water treatment facilities, water and sewage treatment systems, and food and beverage manufacturing facilities. Its Others segment provides IT solutions and security services. The company was founded in 1888 and is headquartered in Tokyo, Japan.

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