Comparing Alfa Laval (OTCMKTS:ALFVY) and Babcock International Group (OTCMKTS:BCKIF)

Babcock International Group (OTCMKTS:BCKIF) and Alfa Laval (OTCMKTS:ALFVY) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Babcock International Group and Alfa Laval, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Babcock International Group	0	0	0	0	0.00
Alfa Laval	1	2	4	0	2.43

Insider & Institutional Ownership

40.5% of Babcock International Group shares are owned by institutional investors. Comparatively, 0.0% of Alfa Laval shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Babcock International Group and Alfa Laval’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Babcock International Group	N/A	N/A	N/A
Alfa Laval	11.63%	18.41%	8.16%

Dividends

Babcock International Group pays an annual dividend of $0.22 per share and has a dividend yield of 1.4%. Alfa Laval pays an annual dividend of $0.61 per share and has a dividend yield of 1.0%. Babcock International Group pays out 49.8% of its earnings in the form of a dividend. Alfa Laval pays out 28.9% 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.

Earnings and Valuation

This table compares Babcock International Group and Alfa Laval”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Babcock International Group	N/A	N/A	N/A	$0.45	36.55
Alfa Laval	$7.12 billion	3.49	$845.40 million	$2.11	28.46

Alfa Laval has higher revenue and earnings than Babcock International Group. Alfa Laval is trading at a lower price-to-earnings ratio than Babcock International Group, indicating that it is currently the more affordable of the two stocks.

Summary

Alfa Laval beats Babcock International Group on 8 of the 11 factors compared between the two stocks.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. It operates through four segments: Marine, Nuclear, Land, and Aviation. The company offers aircraft carriers, frigates, warships, submarines and equipment, weapons handling and launch systems, liquid gas handling and engineering systems, secure military communications systems, autonomous and uncrewed aerial systems, and technology-enabled solutions for secure communications, electronic warfare, and air defense applications. It also provides naval architecture, frontline support, specialist training, and asset management, as well as engineering support services for naval, land, air, and nuclear operations. In addition, the company is involved in the design, integration, and through-life support of various connected combat, support, and surveillance vehicles; integration of long-range fires and C4ISTAR systems; provision of system engineering and general vehicle architecture services; repowering solution to convert platforms; and specialist vehicle conversions. The company was founded in 1891 and is headquartered in London, the United Kingdom.

About Alfa Laval

Alfa Laval Corporate AB provides heat transfer, separation, and fluid handling products and solutions worldwide. It operates in three divisions: Energy, Food & Water, and Marine. The company offers oil/gas-fired steam and composite steam boilers, exhaust gas economizer, and ballast water treatment systems, and exhaust gas cleaning products. It also provides sensing and control, cleaning validation, condition monitoring, agitators, tank, powder mixers, fittings, and tubes, as well as wall mounted cleaning nozzles, rotary jet and heads; and tank accessories and covers. In addition, the company offers centrifugal, rotary lobe, three screw, twin screw, and circumferential piston pumps. Further, it provides butterfly, control and check, double seal, diaphragm, double seat, regulating, safety, sampling, shutter, single seat, and ball valves. Additionally, the company offers heat exchanger, tube-in-tube heat exchangers, and process shell-and-tube heat exchangers. Furthermore, it provides finned tube air heat, scraped surface heat exchangers, and various plate heat exchangers, wet surface, and HYAC hybrid air coolers. The company also offers decanters and separator related products. It serves energy, utilities, home, personal care, food, dairy, beverage, marine, transportation, pharmaceutical, biotech, water, and wastewater industries. Alfa Laval Corporate AB was founded in 1883 and is headquartered in Lund, Sweden.