Ratos AB (publ) (OTCMKTS:RTOBF) versus Bird Construction (OTCMKTS:BIRDF) Financial Review

Ratos AB (publ) (OTCMKTS:RTOBF) and Bird Construction (OTCMKTS:BIRDF) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares Ratos AB (publ) and Bird Construction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ratos AB (publ)	N/A	N/A	N/A
Bird Construction	N/A	N/A	N/A

Institutional & Insider Ownership

13.3% of Ratos AB (publ) shares are held by institutional investors. Comparatively, 45.3% of Bird Construction shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Ratos AB (publ) pays an annual dividend of $3.00 per share and has a dividend yield of 83.3%. Bird Construction pays an annual dividend of $0.76 per share and has a dividend yield of 4.0%. Ratos AB (publ) pays out 96.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bird Construction pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ratos AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ratos AB (publ) and Bird Construction, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ratos AB (publ)	0	0	0	0	0.00
Bird Construction	0	0	2	0	3.00

Bird Construction has a consensus target price of $30.00, indicating a potential upside of 57.98%. Given Bird Construction’s stronger consensus rating and higher possible upside, analysts plainly believe Bird Construction is more favorable than Ratos AB (publ).

Valuation & Earnings

This table compares Ratos AB (publ) and Bird Construction”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ratos AB (publ)	N/A	N/A	N/A	$3.12	1.16
Bird Construction	N/A	N/A	N/A	$0.68	27.78

Ratos AB (publ) is trading at a lower price-to-earnings ratio than Bird Construction, indicating that it is currently the more affordable of the two stocks.

Summary

Bird Construction beats Ratos AB (publ) on 5 of the 8 factors compared between the two stocks.

About Ratos AB (publ)

Ratos AB (publ) is a private equity firm specializing in buyouts, turnarounds, add on acquisitions, and middle market transactions. The firm does not invest in early stages and in companies that operate in the arms industry, pornography, or are detrimental to the environment. It seeks to invest in unlisted medium sized companies. The firm invests in industry, construction and services, consumer, and technology sectors. The firm typically invests in the Nordic region, with focus on Sweden, Finland, Denmark, and Norway. It seeks to invest in companies with equity investments between SEK250 million ($29.66 million) and SEK5000 million ($762.77 million), sales value between SEK300 million ($45.77 million) and SEK5000 million (762.77 million) and EBITDA greater than SEK50 million ($5.15 million). The firm prefers minority and majority stakes. The firm prefers to be the principal owner with a minimum holding of at least 20 percent and also seeks a board seat. It prefers to hold its investment between five to ten years. It invests through its own balance sheet and bank loans. Ratos AB (publ) was founded in 1934 and is based in Stockholm, Sweden.

About Bird Construction

Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, and institutional, and infrastructure markets. It constructs large, complex industrial buildings, including manufacturing, processing, distribution, and warehouse facilities; and provides electrical and instrumentation, high voltage testing and commissioning services, as well as power line construction, structural, mechanical, and piping, including off-site metal and modular fabrication. It also engages in the civil construction operations, such as site preparation and earthworks, underground piping, utilities and foundation, drilling, blasting, and other concrete services, as well as contract mining, mine support, and greenfield and brownfield hydroelectric facilities; steel modular construction; and civil infrastructure operations comprising road, bridge, rail, and underground utilities installation. In addition, it constructs and retrofits institutional facilities, include healthcare facilities, post-secondary education facilities, K-12 schools, public safety and defence facilities, recreation facilities, transportation, courthouses, government buildings, and long term care and senior housing facilities; offers industrial maintenance, repair, and operations services; and constructs new construction and retrofit of warehousing, laboratories, manufacturing and processing facilities, data centers, office buildings, retail spaces, film studio infrastructure, hotels, and mixed-use mid- to high-rise residential buildings. Further, it offers electrical and related system services, such as electrical and mechanical infrastructure design and installation, data communications, telecommunications, security, and lifecycle services. It serves oil and gas, chemicals, liquefied natural gas, natural resources, nuclear, power, renewable energy, and water and wastewater sectors. The company was founded in 1920 and is based in Mississauga, Canada.