Contrasting Rheinmetall (RNMBY) and Its Competitors

Rheinmetall (OTCMKTS:RNMBY) is one of 46 public companies in the “AEROSP/DEF EQ” industry, but how does it compare to its peers? We will compare Rheinmetall to related businesses based on the strength of its risk, valuation, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Risk & Volatility

Rheinmetall has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Rheinmetall’s peers have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

65.1% of shares of all “AEROSP/DEF EQ” companies are held by institutional investors. 8.9% of shares of all “AEROSP/DEF EQ” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Rheinmetall and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rheinmetall	$10.55 billion	N/A	1,953.47
Rheinmetall Competitors	$3.46 billion	$265.08 million	76.19

Rheinmetall has higher revenue, but lower earnings than its peers. Rheinmetall is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Rheinmetall pays an annual dividend of $1.26 per share and has a dividend yield of 0.3%. Rheinmetall pays out 586.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “AEROSP/DEF EQ” companies pay a dividend yield of 0.4% and pay out 20.1% of their earnings in the form of a dividend. Rheinmetall lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Rheinmetall and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rheinmetall	N/A	N/A	N/A
Rheinmetall Competitors	-42.27%	-0.19%	3.44%

Analyst Ratings

This is a breakdown of recent recommendations for Rheinmetall and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rheinmetall	0	0	0	2	4.00
Rheinmetall Competitors	349	1814	2780	97	2.52

As a group, “AEROSP/DEF EQ” companies have a potential downside of 1.71%. Given Rheinmetall’s peers higher probable upside, analysts plainly believe Rheinmetall has less favorable growth aspects than its peers.

Summary

Rheinmetall peers beat Rheinmetall on 8 of the 14 factors compared.

About Rheinmetall

Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.