Contrasting Sandvik (SDVKY) & Its Competitors

Sandvik (OTCMKTS:SDVKY) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it compare to its competitors? We will compare Sandvik to related businesses based on the strength of its profitability, institutional ownership, risk, earnings, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

0.7% of Sandvik shares are held by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are held by institutional investors. 14.3% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Sandvik pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Sandvik pays out 25.8% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend. Sandvik lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Sandvik has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Sandvik’s competitors have a beta of 5.12, suggesting that their average stock price is 412% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sandvik and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandvik	1	5	5	1	2.50
Sandvik Competitors	4207	14714	18239	808	2.41

As a group, “Machinery” companies have a potential upside of 30.48%. Given Sandvik’s competitors higher possible upside, analysts clearly believe Sandvik has less favorable growth aspects than its competitors.

Profitability

This table compares Sandvik and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandvik	13.85%	20.30%	11.08%
Sandvik Competitors	-1,044.43%	-14.99%	0.58%

Valuation and Earnings

This table compares Sandvik and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sandvik	$12.34 billion	$1.50 billion	22.98
Sandvik Competitors	$4.65 billion	$364.05 million	5.89

Sandvik has higher revenue and earnings than its competitors. Sandvik is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Sandvik beats its competitors on 8 of the 15 factors compared.

Sandvik Company Profile

Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It also provides metal-cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and components made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. The company serves aerospace, automotive, energy, general engineering, infrastructure, and mining industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.