Sandvik (SDVKY) versus Its Competitors Head-To-Head Comparison

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

Profitability

This table compares Sandvik and its peers’ 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 peers 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 peers. Sandvik 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.

Volatility & Risk

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

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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sandvik and its peers, as reported by MarketBeat.com.

	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 peers higher probable upside, analysts plainly believe Sandvik has less favorable growth aspects than its peers.

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 insiders. 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.

Summary

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

About Sandvik

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.