Financial Review: Orkla Asa (OTCMKTS:ORKLY) & Barloworld (OTCMKTS:BRRAY)

Orkla Asa (OTCMKTS:ORKLY) and Barloworld (OTCMKTS:BRRAY) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Risk & Volatility

Orkla Asa has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Barloworld has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Orkla Asa and Barloworld, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orkla Asa	1	1	0	0	1.50
Barloworld	0	0	0	0	0.00

Dividends

Orkla Asa pays an annual dividend of $0.46 per share and has a dividend yield of 4.3%. Barloworld pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Orkla Asa pays out 40.7% of its earnings in the form of a dividend.

Profitability

This table compares Orkla Asa and Barloworld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orkla Asa	15.69%	14.12%	7.96%
Barloworld	N/A	N/A	N/A

Earnings and Valuation

This table compares Orkla Asa and Barloworld”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orkla Asa	$1.81 billion	5.83	$1.11 billion	$1.13	9.36
Barloworld	$2.09 billion	1.41	$79.96 million	N/A	N/A

Orkla Asa has higher earnings, but lower revenue than Barloworld.

Summary

Orkla Asa beats Barloworld on 8 of the 10 factors compared between the two stocks.

About Orkla Asa

Orkla ASA engages in branded consumer goods, and industrial and financial investment businesses. The company offers branded products, including frozen pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat meals through grocery channels, as well as food service, convenience stores, and petrol stations. It also provides confectionery, biscuit, and snack products; and spices, masalas, and various food products based on dried mixes. In addition, the company offers personal care, hygiene, laundry detergent, and cleaning products; dietary supplement, oral care, sport nutrition, and weight control products; wound care products and first aid equipment; painting tools and accessories; basic and wool garments; and professional cleaning products. It operates Gymgrossisten, Proteinfabrikken, Bodystore, and Fitnesstukku e-commerce portals for health and sports nutrition products; and restaurants. Additionally, the company supplies margarine and butter blends, bread and cake improvers and mixes, yeast, marzipan, and ice cream ingredients; produces and supplies hydro power to the Nordic power market; and develops and sells real estate properties. It offers its food products under the Grandiosa, TORO, Stabburet, Felix, Paulúns, Fun Light, Abba, Beauvais, Kalles, Den Gamle Fabrik, Hamé, and Vitana brands; confectionery and snacks under the KiMs, Nidar, Stratos, Sætre, Göteborgs Kex, OLW, Panda, Laima, Selga, Taffel, Kalev, and Nói Síríus brands; home and personal care products under Zalo, OMO, Blenda, Jif, Define, Solidox, Dr Greve, Lano, and Bliw; health produtcs under Möller's, Jordan, Vitalab, OSL, Cederroth First Aid, Salvequick, Livol, Nutrilett, Maxim, Collett, Solidox and CuraMed brands; and food ingredients under the Odense, Mors Hjemmebakte, KronJäst, Bakkedal, and NATURLI brands. It has operations in Norway, Sweden, Denmark, Finland, Iceland, the Baltics, rest of Europe, and internationally. The company was founded in 1918 and is headquartered in Oslo, Norway.

About Barloworld

Barloworld Limited operates as an industrial processing, distribution, and services company in Southern Africa, Australia, Russia, and Mongolia. The company operates through Equipment Southern Africa, Automotive, Ingrain, Equipment Eurasia, and Other segments. The company offers industrial equipment and services comprising of earthmoving equipment, industrial services, and power systems that enable various mining, construction, and power solutions. It also manufactures various products, which includes food, beverages, paper, pharmaceuticals, building material and adhesives, and others. In addition, the company offers starch, glucose, and other products; and salvage management and disposal services. It serves mining, construction, energy, and transportation sectors. The company was founded in 1902 and is based in Sandton, South Africa.