Reviewing Kawasaki Heavy Industries (OTCMKTS:KWHIY) & Dover (NYSE:DOV)

Kawasaki Heavy Industries (OTCMKTS:KWHIY) and Dover (NYSE:DOV) are both large-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

Kawasaki Heavy Industries has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Dover has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Insider & Institutional Ownership

84.5% of Dover shares are held by institutional investors. 1.3% of Dover shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Kawasaki Heavy Industries and Dover, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kawasaki Heavy Industries	0	1	0	0	2.00
Dover	0	5	7	0	2.58

Dover has a consensus target price of $212.27, suggesting a potential upside of 16.50%. Given Dover’s stronger consensus rating and higher probable upside, analysts clearly believe Dover is more favorable than Kawasaki Heavy Industries.

Dividends

Kawasaki Heavy Industries pays an annual dividend of $0.30 per share and has a dividend yield of 1.1%. Dover pays an annual dividend of $2.08 per share and has a dividend yield of 1.1%. Kawasaki Heavy Industries pays out 19.6% of its earnings in the form of a dividend. Dover pays out 12.8% 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. Dover has increased its dividend for 70 consecutive years.

Valuation and Earnings

This table compares Kawasaki Heavy Industries and Dover”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kawasaki Heavy Industries	$13.98 billion	0.79	$580.81 million	$1.53	17.16
Dover	$7.92 billion	3.15	$2.70 billion	$16.26	11.21

Dover has lower revenue, but higher earnings than Kawasaki Heavy Industries. Dover is trading at a lower price-to-earnings ratio than Kawasaki Heavy Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kawasaki Heavy Industries and Dover’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kawasaki Heavy Industries	3.49%	10.50%	2.55%
Dover	28.37%	17.62%	9.94%

Summary

Dover beats Kawasaki Heavy Industries on 14 of the 17 factors compared between the two stocks.

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.

About Dover

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.