Daimler AG (DAI.F) (ETR:DAI) and Knorr-Bremse Aktiengesellschaft (ETR:KBX) are both large-cap consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Daimler AG (DAI.F) and Knorr-Bremse Aktiengesellschaft, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Daimler AG (DAI.F) | 2 | 5 | 11 | 0 | 2.50 |
Knorr-Bremse Aktiengesellschaft | 3 | 6 | 4 | 0 | 2.08 |
Daimler AG (DAI.F) presently has a consensus target price of €66.41, suggesting a potential downside of 0.30%. Knorr-Bremse Aktiengesellschaft has a consensus target price of €104.67, suggesting a potential downside of 1.26%. Given Daimler AG (DAI.F)'s stronger consensus rating and higher probable upside, equities research analysts clearly believe Daimler AG (DAI.F) is more favorable than Knorr-Bremse Aktiengesellschaft.
Valuation and Earnings
This table compares Daimler AG (DAI.F) and Knorr-Bremse Aktiengesellschaft'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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Daimler AG (DAI.F) | $154.31 billion | 0.46 | $3.63 billion | €3.39 | 19.65 |
Knorr-Bremse Aktiengesellschaft | $6.29 billion | 2.72 | $523.90 million | €3.25 | 32.62 |
Daimler AG (DAI.F) has higher revenue and earnings than Knorr-Bremse Aktiengesellschaft. Daimler AG (DAI.F) is trading at a lower price-to-earnings ratio than Knorr-Bremse Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Daimler AG (DAI.F) and Knorr-Bremse Aktiengesellschaft's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Daimler AG (DAI.F) | N/A | N/A | N/A |
Knorr-Bremse Aktiengesellschaft | N/A | N/A | N/A |
Dividends
Daimler AG (DAI.F) pays an annual dividend of €1.35 per share and has a dividend yield of 2.0%. Knorr-Bremse Aktiengesellschaft pays an annual dividend of €1.80 per share and has a dividend yield of 1.7%. Daimler AG (DAI.F) pays out 39.8% of its earnings in the form of a dividend. Knorr-Bremse Aktiengesellschaft pays out 55.4% 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. Daimler AG (DAI.F) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Daimler AG (DAI.F) beats Knorr-Bremse Aktiengesellschaft on 8 of the 10 factors compared between the two stocks.