MillerKnoll (NASDAQ:MLKN) vs. MTU Aero Engines (OTCMKTS:MTUAY) Critical Comparison

MillerKnoll (NASDAQ:MLKN) and MTU Aero Engines (OTCMKTS:MTUAY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares MillerKnoll and MTU Aero Engines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MillerKnoll -0.53% 12.46% 4.41%
MTU Aero Engines 4.86% 11.32% 3.71%

Dividends

MillerKnoll pays an annual dividend of $0.75 per share and has a dividend yield of 2.0%. MTU Aero Engines pays an annual dividend of $0.51 per share and has a dividend yield of 0.5%. MillerKnoll pays out -468.7% of its earnings in the form of a dividend. MTU Aero Engines pays out 23.9% 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. MillerKnoll is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares MillerKnoll and MTU Aero Engines’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MillerKnoll $2.47 billion 1.15 $173.10 million ($0.16) -233.36
MTU Aero Engines $4.54 billion 2.65 $158.78 million $2.13 52.84

MillerKnoll has higher earnings, but lower revenue than MTU Aero Engines. MillerKnoll is trading at a lower price-to-earnings ratio than MTU Aero Engines, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

MillerKnoll has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Institutional and Insider Ownership

88.8% of MillerKnoll shares are owned by institutional investors. 1.2% of MillerKnoll shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for MillerKnoll and MTU Aero Engines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MillerKnoll 0 0 0 0 N/A
MTU Aero Engines 1 3 9 0 2.62

MillerKnoll Company Profile

MillerKnoll, Inc. engages in the research, design, manufacture, and distribution of interior furnishings for use in various environments including office, healthcare, educational, and residential settings. It operates through the following segments: North America Contract, International Contract, Retail, and Corporate. The North America Contract segment includes the operations associated with the design, manufacture, and sale of furniture and textile products for work-related settings throughout the United States and Canada. The International Contract segment covers operations in the Europe, Middle East, and Africa; Latin America; and Asia-Pacific geographic regions. The Retail segment focuses on the sale of modern design furnishings and accessories to third party retail distributors. The Corporate segment consists of unallocated expenses related to general corporate functions including certain legal, executive, corporate finance, information technology, administrative, and acquisition-related costs. The company was founded by Dirk Jan de Pree in 1905 and is headquartered in Zeeland, MI.

MTU Aero Engines Company Profile

MTU Aero Engines AG is engaged in the development, manufacture and trade of aviation engine and components. It operates its business through the following segments: Original Equipment Manufacturing, and Maintenance, Repair and Overhaul. The Original Equipment Manufacturing segment develops, manufactures, assembles and delivers commercial and military engines and components. The Maintenance, Repair and Overhaul segment maintains, repairs and overhauls aircraft engines and industrial gas turbines. The company was founded by Karl Rapp in 1913 and is headquartered in Munich, Germany.

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