Financial Analysis: Nokian Renkaat Oyj (OTCMKTS:NKRKY) and Knorr-Bremse (OTCMKTS:KNRRY)

Nokian Renkaat Oyj (OTCMKTS:NKRKY) and Knorr-Bremse (OTCMKTS:KNRRY) are both consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Nokian Renkaat Oyj and Knorr-Bremse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokian Renkaat Oyj	0	1	0	0	2.00
Knorr-Bremse	1	2	5	0	2.50

Institutional & Insider Ownership

0.2% of Nokian Renkaat Oyj shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Nokian Renkaat Oyj and Knorr-Bremse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nokian Renkaat Oyj	N/A	N/A	N/A
Knorr-Bremse	7.08%	17.17%	6.13%

Valuation & Earnings

This table compares Nokian Renkaat Oyj and Knorr-Bremse”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.45	16.58
Knorr-Bremse	$8.84 billion	2.19	$604.17 million	$0.28	107.38

Knorr-Bremse has higher revenue and earnings than Nokian Renkaat Oyj. Nokian Renkaat Oyj is trading at a lower price-to-earnings ratio than Knorr-Bremse, indicating that it is currently the more affordable of the two stocks.

Summary

Knorr-Bremse beats Nokian Renkaat Oyj on 7 of the 9 factors compared between the two stocks.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.

About Knorr-Bremse

Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.