Critical Comparison: Komatsu (OTCMKTS:KMTUY) & Elmet Group (NASDAQ:ELMT)

Elmet Group (NASDAQ:ELMT) and Komatsu (OTCMKTS:KMTUY) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current recommendations for Elmet Group and Komatsu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elmet Group	1	1	4	0	2.50
Komatsu	0	1	0	2	3.33

Elmet Group presently has a consensus target price of $27.50, indicating a potential upside of 41.90%. Given Elmet Group’s higher probable upside, analysts plainly believe Elmet Group is more favorable than Komatsu.

Valuation & Earnings

This table compares Elmet Group and Komatsu”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elmet Group	N/A	N/A	N/A	$0.41	47.27
Komatsu	$27.45 billion	1.29	$2.48 billion	$2.78	13.72

Komatsu has higher revenue and earnings than Elmet Group. Komatsu is trading at a lower price-to-earnings ratio than Elmet Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Elmet Group and Komatsu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elmet Group	N/A	N/A	N/A
Komatsu	8.92%	10.56%	5.94%

Insider & Institutional Ownership

0.2% of Komatsu shares are owned by institutional investors. 44.2% of Elmet Group shares are owned by insiders. Comparatively, 2.9% of Komatsu shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Komatsu beats Elmet Group on 8 of the 11 factors compared between the two stocks.

About Elmet Group

Elmet provides precision-engineered components and advanced high-energy systems for growth markets. Our customers in these markets require advanced technology involving critical and strategic materials, such as tungsten, molybdenum and niobium (such materials, the “Critical Materials”) and high-level radio frequency (“RF”) engineering, including plasma generation, radar, and other high-energy systems (together, “High-Power Microwave”). Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries.

About Komatsu

Komatsu Ltd. is a Japanese manufacturer of construction, mining, utility and forestry equipment. Its products include excavators, bulldozers, wheel loaders, motor graders and mining trucks, along with machinery and services for forestry operations. The company also provides equipment maintenance, parts and technology solutions, including systems that support fleet management and automated operations. Founded in 1921 and headquartered in Tokyo, Komatsu has expanded from its origins as a Japanese industrial manufacturer into a global equipment and services provider.