Comparing KONE Oyj (OTCMKTS:KNYJY) & Ube Industries (OTCMKTS:UBEOY)

Ube Industries (OTCMKTS:UBEOY) and KONE Oyj (OTCMKTS:KNYJY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Dividends

Ube Industries pays an annual dividend of $0.31 per share and has a dividend yield of 2.9%. KONE Oyj pays an annual dividend of $0.77 per share and has a dividend yield of 1.9%. Ube Industries pays out 27.9% of its earnings in the form of a dividend. KONE Oyj pays out 74.8% 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. Ube Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Ube Industries and KONE Oyj’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ube Industries $5.79 billion 0.40 $216.38 million $1.11 9.77
KONE Oyj $11.35 billion 3.69 $1.07 billion $1.03 39.25

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

Insider and Institutional Ownership

0.1% of KONE Oyj shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Ube Industries and KONE Oyj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ube Industries 3.76% 6.73% 3.26%
KONE Oyj 9.76% 35.64% 11.61%

Volatility and Risk

Ube Industries has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, KONE Oyj has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Ube Industries and KONE Oyj, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ube Industries 0 0 0 0 N/A
KONE Oyj 2 8 5 0 2.20

Summary

KONE Oyj beats Ube Industries on 9 of the 13 factors compared between the two stocks.

Ube Industries Company Profile

Ube Industries, Ltd., together with its subsidiaries, engages in the chemicals, construction materials, and machinery businesses in Japan, Asia, Europe, and internationally. The company operates through four segments: Chemicals, Construction Materials, Machinery, and Others. It offers synthetic rubber, engineering plastics, caprolactam, industrial chemicals, liquefied gas, polyethylene, ammonium sulfate, polyimide, battery materials, telecommunication parts, separation membranes, fine chemicals, ceramics, phosphor products, high purity chemicals, polyurethane and related materials, aerospace materials, inorganic fiber, and high temperature paints. The company also provides contract manufacturing services for APIs and intermediates; aromatic SF5 compounds; FLUOLEAD, a novel nucleophilic fluorinating agent; and drug discovery and pipeline services. In addition, it offers cement products, such as ordinary and specialized cement; and building materials, including interior and exterior materials, waterproofing materials, floor underlayment materials, plastering materials, and foundation materials, as well as sells imported coal. Further, the company is involved in the wholesale power. Additionally, it provides die-casting and injection molding machines, and extrusion presses, UBE vertical mills, kilins, furnaces, dryers, water screening equipment, storage and transportation systems, and bridges and steel structures. The company also manufactures and sells nylon, ready-mixed concrete, ammonia and industrial gases, plastic films, polypropylene molded products, fibers, fiber-reinforced plastics, magnesia clinker, quicklime, slaked lime, concrete piles, and cast iron and rolled steel billets; and offers domestic shipping, harbor transportation, shipping-agency, and customs clearing services. Ube Industries, Ltd. was founded in 1897 and is headquartered in Tokyo, Japan.

KONE Oyj Company Profile

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. It offers elevators, escalators, auto walks, and automatic building doors. The company also provides maintenance services under the KONE Care and KONE 24/7 Connected Services brand names; modernization solutions; and various residential solutions. In addition, it offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Residential Flow, a smarter building solution for the movement of people, goods, and information; KONE Access, an access control system, which is integrated with elevator system and building doors; destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, the company provides people flow planning and consulting services; and solutions for special buildings and large projects. KONE Oyj was founded in 1908 and is based in Espoo, Finland.

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