NSK (OTCMKTS:NPSKY) and GrafTech International (NYSE:EAF) Critical Contrast

GrafTech International (NYSE:EAF) and NSK (OTCMKTS:NPSKY) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Insider and Institutional Ownership

92.8% of GrafTech International shares are held by institutional investors. 0.7% of GrafTech International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares GrafTech International and NSK”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrafTech International	$538.78 million	0.54	-$131.16 million	($0.54)	-2.10
NSK	$5.23 billion	0.42	$70.27 million	N/A	N/A

NSK has higher revenue and earnings than GrafTech International.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for GrafTech International and NSK, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrafTech International	0	5	0	0	2.00
NSK	0	0	0	0	0.00

GrafTech International currently has a consensus price target of $1.63, suggesting a potential upside of 43.17%. Given GrafTech International’s stronger consensus rating and higher probable upside, equities analysts clearly believe GrafTech International is more favorable than NSK.

Profitability

This table compares GrafTech International and NSK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrafTech International	-27.17%	-459.99%	-9.72%
NSK	N/A	N/A	N/A

Volatility & Risk

GrafTech International has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, NSK has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Summary

GrafTech International beats NSK on 6 of the 11 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

About NSK

NSK Ltd., together with its subsidiaries, manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts worldwide. Its products include ball bearings; roller bearings; bearing units; super precision bearings; bearings for steel industry, mining and construction, papermaking machines, and pumps and compressors; and bearings for special environments, including sanitary, corrosive, vacuum, cleanroom, high-temperature, non-magnetic requirement, and dust-contaminated environments. The company also provides automotive products, which comprise chassis products, such as electric power steerings, steering column and intermediate shafts, brake systems, and hub unit bearings; power train products comprising engine parts and electrical accessories, automatic and manual transmission, products for motorcycles and all-terrain vehicles, half toroidal CVT POWERTOROS units, and differential gear and propeller shafts. In addition, it offers precision machine components, including ball screws, linear guides, monocarriers, XY tables, and spindles; and accessories, including ball screw support bearings, air bearings, and clean grease, as well as support units for heavy and light loads, machine tools, and small equipment. Further, the company provides megatorque motors and maintenance services. It serves agriculture, automotive, cement, food processing machinery, industrial motor, gearbox, injection molding machine, machine tool, medical device, mining and construction, motorcycle, office equipment, palm oil, papermaking machinery, pump and compressor, railway, semiconductor, steel, sugar, and wind turbine industries. NSK Ltd. was incorporated in 1916 and is headquartered in Tokyo, Japan.