OUTOKUMPU OYJ/ADR (OTCMKTS:OUTKY) and NIHON KOHDEN Co/ADR (OTCMKTS:NHNKY) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares OUTOKUMPU OYJ/ADR and NIHON KOHDEN Co/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OUTOKUMPU OYJ/ADR $7.19 billion 0.24 $443.07 million $1.02 1.99
NIHON KOHDEN Co/ADR $1.57 billion 1.77 $82.38 million $0.51 30.78

OUTOKUMPU OYJ/ADR has higher revenue and earnings than NIHON KOHDEN Co/ADR. OUTOKUMPU OYJ/ADR is trading at a lower price-to-earnings ratio than NIHON KOHDEN Co/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares OUTOKUMPU OYJ/ADR and NIHON KOHDEN Co/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OUTOKUMPU OYJ/ADR 3.41% 8.63% 3.79%
NIHON KOHDEN Co/ADR 5.53% 9.65% 6.90%

Dividends

OUTOKUMPU OYJ/ADR pays an annual dividend of $0.13 per share and has a dividend yield of 6.4%. NIHON KOHDEN Co/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 0.7%. OUTOKUMPU OYJ/ADR pays out 12.7% of its earnings in the form of a dividend. NIHON KOHDEN Co/ADR pays out 21.6% 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. OUTOKUMPU OYJ/ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

0.0% of NIHON KOHDEN Co/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for OUTOKUMPU OYJ/ADR and NIHON KOHDEN Co/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OUTOKUMPU OYJ/ADR 0 1 0 0 2.00
NIHON KOHDEN Co/ADR 0 0 0 0 N/A

Volatility & Risk

OUTOKUMPU OYJ/ADR has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, NIHON KOHDEN Co/ADR has a beta of -0.33, meaning that its share price is 133% less volatile than the S&P 500.

About OUTOKUMPU OYJ/ADR

Outokumpu Oyj produces and sells various stainless steel products in Finland, Germany, Sweden, the United Kingdom, other European countries, Asia and Oceania, and internationally. The company provides stainless steel bars, coils and sheets, steel precision strips, rebars, and wire rods; and semi-finished products, such as cast billets and blooms, cast slabs, stainless steel ingots, and rolled and forged billets, as well as pipes. Its products are used in various applications, including architecture, building, and infrastructure; automotive and transportation; catering, food, and beverage; home appliances; and energy and heavy industries. The company is headquartered in Helsinki, Finland.

About NIHON KOHDEN Co/ADR

Nihon Kohden Corporation develops, produces, and sells medical electronic equipment in Japan and internationally. It provides physiological measuring equipment, including electroencephalographs, electrocardiographs, evoked potential and electromyogram measuring systems, and polygraphs for cath labs, diagnostic information systems, and related consumables, such as recording paper, electrodes and catheters, and maintenance services. The company also offers patient monitors systems comprising central monitors, bedside monitors, wireless monitors, remote access software, and other equipment; and clinical information systems and related consumables and services. In addition, it provides treatment equipment, such as defibrillators, automated external defibrillators, pacemakers, implanted cardioverter defibrillators, ventilators, anesthesia machines, vagal nerve stimulations, cochlear implants, and related consumables and services, such as AED pads and batteries. Further, the company offers other medical equipment consisting of automated hematology analyzers, clinical chemistry analyzers, ultrasound diagnostic equipment, basic laboratory equipment, as well as consumables, including test reagents, and installation and maintenance services. Nihon Kohden Corporation was founded in 1951 and is headquartered in Tokyo, Japan.

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