Orkla Asa (OTCMKTS:ORKLY) vs. Sumitomo (OTCMKTS:SSUMY) Financial Comparison

Orkla Asa (OTCMKTS:ORKLY) and Sumitomo (OTCMKTS:SSUMY) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Orkla Asa and Sumitomo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orkla Asa	1	1	0	0	1.50
Sumitomo	0	0	0	1	4.00

Volatility and Risk

Orkla Asa has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Sumitomo has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares Orkla Asa and Sumitomo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orkla Asa	$1.81 billion	5.97	$1.11 billion	$0.74	14.82
Sumitomo	$48.74 billion	1.08	$3.77 billion	$0.86	12.77

Sumitomo has higher revenue and earnings than Orkla Asa. Sumitomo is trading at a lower price-to-earnings ratio than Orkla Asa, indicating that it is currently the more affordable of the two stocks.

Dividends

Orkla Asa pays an annual dividend of $0.46 per share and has a dividend yield of 4.2%. Sumitomo pays an annual dividend of $0.19 per share and has a dividend yield of 1.7%. Orkla Asa pays out 62.2% of its earnings in the form of a dividend. Sumitomo pays out 22.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Orkla Asa and Sumitomo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orkla Asa	9.91%	13.52%	7.56%
Sumitomo	8.37%	13.55%	4.83%

Summary

Sumitomo beats Orkla Asa on 8 of the 13 factors compared between the two stocks.

About Orkla Asa

Orkla ASA is a Norwegian industrial investment company focused primarily on branded consumer goods. Its portfolio includes businesses offering food, confectionery and snacks, health and personal care products, and ingredients for food producers. The company’s brands and products serve consumers and business customers through grocery, foodservice and specialty retail channels. Orkla has a strong presence in the Nordic and Baltic countries, with operations and sales in other European markets and selected markets elsewhere.

About Sumitomo

Sumitomo Corporation is a Japan-based trading and investment company that connects businesses, suppliers and customers across a wide range of industries. Its activities include trading in goods and materials, developing projects, and investing in companies and infrastructure. The company operates across areas such as metal products, transportation and construction systems, infrastructure, energy and mineral resources, chemicals, real estate, and media and digital services. Its businesses include supplying industrial materials and equipment, supporting energy and transportation projects, and providing services for consumers and businesses.