Critical Analysis: Keyence (OTCMKTS:KYCCF) & Wartsila (OTCMKTS:WRTBY)

Wartsila (OTCMKTS:WRTBY) and Keyence (OTCMKTS:KYCCF) are both large-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Volatility & Risk

Wartsila has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Keyence has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wartsila and Keyence, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wartsila	3	2	2	0	1.86
Keyence	0	0	2	2	3.50

Earnings & Valuation

This table compares Wartsila and Keyence”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wartsila	$7.82 billion	2.13	$708.26 million	$0.24	23.50
Keyence	$7.31 billion	16.05	$2.78 billion	$3.60	134.31

Keyence has lower revenue, but higher earnings than Wartsila. Wartsila is trading at a lower price-to-earnings ratio than Keyence, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wartsila and Keyence’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wartsila	9.12%	25.16%	7.81%
Keyence	N/A	N/A	N/A

Summary

Keyence beats Wartsila on 7 of the 11 factors compared between the two stocks.

About Wartsila

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers engine power plant products, such as gas, multi-fuel, and diesel engines; GEMS Digital Energy Platform, a smart software platform that monitors, controls, and optimizes energy assets on site and portfolio levels; GridSolv Quantum, a fully integrated energy storage solution, which enables ease of deployment and sustainable energy optimization; GEMS Power Plant Controllers; GEMS Fleet Director, which provides centralized real-time visibility into a global fleet of power plants; and GEMS Grid Controller that conducts intelligent grid control and optimized power management for microgrids of various sizes. The company also provides GEMS smart energy management software platform to remotely monitor, operate, identify, and diagnose assets; lifecycle solutions for power plants; power and propulsion products, such as electric shipping and hybrid ships, engine and generating sets, propulsors and gears, and shaft line solutions; liquid and gas handling products, including ballast water management, freshwater generation, waste and wastewater treatment, gas solutions, and exhaust treatment equipment; port and fleet optimization; simulation and training solutions; and automation, navigation, and control systems. The company was founded in 1834 and is headquartered in Helsinki, Finland.

About Keyence

Keyence Corporation, together with its subsidiaries, engages in the development, manufacture, and sale of factory automation solutions in Japan, China, the United States, and internationally. The company offers photoelectric, fiber optic, laser, positioning, vision, specific solution, and inductive proximity sensors, as well as network communication units. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, inductive displacement sensor, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, multisensor measurement, and CMM/laser trackers. In addition, the company provides safety products comprising safety laser scanners, light curtains, interlock switches, and controllers; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it offers static eliminators/ionizers and electrostatic sensors, which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors; and programmable logic controllers, servo motor and system, and other controls that are used for machine control applications. Additionally, the company provides barcode and handheld scanners; laser marking systems/laser markers, UV laser coder, and industrial continuous inkjet printers; digital, 3D surface profilers, elemental analyzers, optical profilometers, and fluorescence microscopes; data loggers; and mobile/ handheld computers. It serves customers in automotive, semiconductors/LCDs, electronic devices, food/pharmaceutical, medical technology, logistics, metals, plastics, and films/sheets industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.