ElringKlinger (ETR:ZIL2) and CEWE Stiftung & Co. KGaA (ETR:CWC) are both small-cap consumer cyclical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Dividends
ElringKlinger pays an annual dividend of €0.50 per share and has a dividend yield of 3.6%. CEWE Stiftung & Co. KGaA pays an annual dividend of €2.30 per share and has a dividend yield of 1.7%. ElringKlinger pays out -77.6% of its earnings in the form of a dividend. CEWE Stiftung & Co. KGaA pays out 32.2% 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. ElringKlinger is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares ElringKlinger and CEWE Stiftung & Co. KGaA's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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ElringKlinger | $1.48 billion | 0.60 | $-40,803,840.00 | (€0.64) | -21.66 |
CEWE Stiftung & Co. KGaA | $731.31 million | 1.30 | $51.55 million | €7.15 | 18.49 |
CEWE Stiftung & Co. KGaA has lower revenue, but higher earnings than ElringKlinger. ElringKlinger is trading at a lower price-to-earnings ratio than CEWE Stiftung & Co. KGaA, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ElringKlinger and CEWE Stiftung & Co. KGaA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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ElringKlinger | N/A | N/A | N/A |
CEWE Stiftung & Co. KGaA | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for ElringKlinger and CEWE Stiftung & Co. KGaA, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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ElringKlinger | 3 | 4 | 1 | 0 | 1.75 |
CEWE Stiftung & Co. KGaA | 0 | 0 | 3 | 0 | 3.00 |
ElringKlinger currently has a consensus price target of €13.40, suggesting a potential downside of 3.94%. CEWE Stiftung & Co. KGaA has a consensus price target of €134.00, suggesting a potential upside of 1.36%. Given CEWE Stiftung & Co. KGaA's stronger consensus rating and higher probable upside, analysts plainly believe CEWE Stiftung & Co. KGaA is more favorable than ElringKlinger.
Summary
CEWE Stiftung & Co. KGaA beats ElringKlinger on 7 of the 10 factors compared between the two stocks.