Analyzing Knorr-Bremse (OTCMKTS:KNRRY) and Uni-Select (OTCMKTS:UNIEF)

Knorr-Bremse (OTCMKTS:KNRRY) and Uni-Select (OTCMKTS:UNIEF) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Knorr-Bremse and Uni-Select’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knorr-Bremse	N/A	N/A	N/A
Uni-Select	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Knorr-Bremse and Uni-Select, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knorr-Bremse	1	2	5	0	2.50
Uni-Select	0	0	0	0	0.00

Dividends

Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%. Uni-Select pays an annual dividend of $0.51 per share and has a dividend yield of 1.4%. Knorr-Bremse pays out 117.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uni-Select pays out 23.4% of its earnings in the form of a dividend. Uni-Select is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Knorr-Bremse and Uni-Select”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knorr-Bremse	$8.84 billion	2.10	$604.17 million	$0.28	102.68
Uni-Select	N/A	N/A	N/A	$2.20	16.33

Knorr-Bremse has higher revenue and earnings than Uni-Select. Uni-Select is trading at a lower price-to-earnings ratio than Knorr-Bremse, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

73.0% of Uni-Select shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Knorr-Bremse

Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.

About Uni-Select

Uni-Select Inc., together with its subsidiaries, distributes automotive refinish, and industrial coatings and related products in North America. It operates through FinishMaster U.S., Canadian Automotive Group, and GSF Car Parts U.K. segments. The company engages in the distribution of automotive aftermarket parts in Canada; and distribution of automotive original equipment manufacturer and aftermarket parts in the United Kingdom. It operates distribution centers and corporate stores under the BUMPER TO BUMPER, AUTO PARTS PLUS, and FINISHMASTER names. Uni-Select Inc. was founded in 1968 and is headquartered in Boucherville, Canada.