Nemetschek (ETR:NEM) and Aixtron (ETR:AIXA) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Earnings & Valuation
This table compares Nemetschek and Aixtron's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Nemetschek | $596.91 million | 11.54 | $96.90 million | €0.84 | 71.08 |
Aixtron | $269.25 million | 8.01 | $34.67 million | €0.31 | 62.19 |
Nemetschek has higher revenue and earnings than Aixtron. Aixtron is trading at a lower price-to-earnings ratio than Nemetschek, indicating that it is currently the more affordable of the two stocks.
Dividends
Nemetschek pays an annual dividend of €0.30 per share and has a dividend yield of 0.5%. Aixtron pays an annual dividend of €0.11 per share and has a dividend yield of 0.6%. Nemetschek pays out 35.8% of its earnings in the form of a dividend. Aixtron pays out 35.5% 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. Aixtron is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Nemetschek and Aixtron's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Nemetschek | N/A | N/A | N/A |
Aixtron | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current ratings and target prices for Nemetschek and Aixtron, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Nemetschek | 2 | 3 | 5 | 0 | 2.30 |
Aixtron | 0 | 3 | 3 | 0 | 2.50 |
Nemetschek currently has a consensus price target of €62.45, indicating a potential upside of 4.71%. Aixtron has a consensus price target of €18.92, indicating a potential downside of 1.88%. Given Nemetschek's higher possible upside, equities analysts clearly believe Nemetschek is more favorable than Aixtron.
Summary
Nemetschek beats Aixtron on 7 of the 10 factors compared between the two stocks.