Financial Analysis: thyssenkrupp (OTCMKTS:TYEKF) vs. Zalando (OTCMKTS:ZLNDY)

thyssenkrupp (OTCMKTS:TYEKF) and Zalando (OTCMKTS:ZLNDY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Volatility and Risk

thyssenkrupp has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Profitability

This table compares thyssenkrupp and Zalando’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
thyssenkrupp 36.47% -70.37% -13.39%
Zalando 2.45% 10.16% 3.59%

Analyst Ratings

This is a breakdown of recent ratings and price targets for thyssenkrupp and Zalando, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
thyssenkrupp 0 1 1 0 2.50
Zalando 2 5 8 1 2.50

thyssenkrupp currently has a consensus target price of $35.00, indicating a potential upside of 182.26%. Given thyssenkrupp’s higher possible upside, analysts clearly believe thyssenkrupp is more favorable than Zalando.

Valuation & Earnings

This table compares thyssenkrupp and Zalando’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
thyssenkrupp $32.37 billion 0.24 $10.74 billion N/A N/A
Zalando $7.26 billion 4.09 $111.66 million N/A N/A

thyssenkrupp has higher revenue and earnings than Zalando.

Insider and Institutional Ownership

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

Summary

Zalando beats thyssenkrupp on 7 of the 12 factors compared between the two stocks.

thyssenkrupp Company Profile

thyssenkrupp AG operates in the areas of automotive technology, industrial components, plant technology, marine systems, steel, and materials services in Germany, the United States, China, and internationally. The company's Automotive Technology segment develops and manufactures components and systems and automated production systems for the automotive industry. Its Industrial Components segment manufactures and sells forged components and system solutions for the resource, construction, and mobility sectors; and slewing rings, antifriction bearings, and seamless rolled rings for the wind energy and construction machinery sectors. The company's Plant Technology segment builds plants for the chemical, cement, and mining industries. Its Marine Systems segment provides systems in the submarine and surface ship building, as well as in the field of maritime electronics and security technology. The company's Materials Services segment distributes materials and offers technical services for the production and manufacturing sectors. Its Steel Europe segment provides flat carbon steel products, intelligent material solutions, and finished parts. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

Zalando Company Profile

Zalando SE operates as an online fashion and lifestyle retailer. It offers a range of products, including shoes, apparel, accessories, and beauty products for women, men, and children, as well as free delivery and returns services. The company also sells its products through its Zalando Lounge; and brick-and-mortar stores in Berlin, Frankfurt, Cologne, Leipzig, Hamburg, Hanover, Münster, Stuttgart, Mannheim, and Ulm. It serves in Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxemburg, the Netherlands, Norway, Poland, Spain, Sweden, Switzerland, and the United Kingdom. Zalando SE was founded in 2008 and is headquartered in Berlin, Germany.

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