Wärtsilä is one of 20 publicly-traded companies in the “Special industry machinery, not elsewhere classified” industry, but how does it contrast to its competitors? We will compare Wärtsilä to related companies based on the strength of its analyst recommendations, profitability, risk, institutional ownership, valuation, earnings and dividends.
Dividends
Wärtsilä pays an annual dividend of $0.15 per share and has a dividend yield of 3.2%. Wärtsilä pays out 100.0% of its earnings in the form of a dividends, suggesting it may not have sufficient earnings to cover its dividend payments in the future. As a group, “Special industry machinery, not elsewhere classified” companies pay a dividend yield of 1.0% and pay out 22.6% of their earnings in the form of a dividend.
Valuation & Earnings
This table compares Wärtsilä and its competitors top-line revenue, earnings per share (EPS) and valuation.
Wärtsilä has higher revenue and earnings than its competitors. Wärtsilä is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
Wärtsilä has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Wärtsilä’s competitors have a beta of 1.37, indicating that their average stock price is 37% more volatile than the S&P 500.
Institutional and Insider Ownership
57.1% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by institutional investors. 10.5% of shares of all “Special industry machinery, not elsewhere classified” companies are owned 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Wärtsilä and its competitors, as provided by MarketBeat.
As a group, “Special industry machinery, not elsewhere classified” companies have a potential upside of 28.48%. Given Wärtsilä’s competitors higher possible upside, analysts clearly believe Wärtsilä has less favorable growth aspects than its competitors.
Summary
Wärtsilä beats its competitors on 7 of the 12 factors compared.
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Source: Registrar Journal
