CEWE Stiftung & Co. KGaA (ETR:CWC) and Grammer (ETR:GMM) are both small-cap consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Profitability
This table compares CEWE Stiftung & Co. KGaA and Grammer's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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CEWE Stiftung & Co. KGaA | N/A | N/A | N/A |
Grammer | N/A | N/A | N/A |
Dividends
CEWE Stiftung & Co. KGaA pays an annual dividend of €2.30 per share and has a dividend yield of 1.8%. Grammer pays an annual dividend of €0.75 per share and has a dividend yield of 3.0%. CEWE Stiftung & Co. KGaA pays out 32.2% of its earnings in the form of a dividend. Grammer pays out -14.7% 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. Grammer is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings for CEWE Stiftung & Co. KGaA and Grammer, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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CEWE Stiftung & Co. KGaA | 0 | 0 | 3 | 0 | 3.00 |
Grammer | 0 | 1 | 0 | 0 | 2.00 |
CEWE Stiftung & Co. KGaA currently has a consensus price target of €126.00, suggesting a potential downside of 1.41%. Grammer has a consensus price target of €23.50, suggesting a potential downside of 5.24%. Given CEWE Stiftung & Co. KGaA's stronger consensus rating and higher possible upside, equities analysts clearly believe CEWE Stiftung & Co. KGaA is more favorable than Grammer.
Valuation and Earnings
This table compares CEWE Stiftung & Co. KGaA and Grammer's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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CEWE Stiftung & Co. KGaA | $731.31 million | 1.26 | $51.55 million | €7.15 | 17.87 |
Grammer | $1.71 billion | 0.22 | $-77,215,864.00 | (€5.10) | -4.86 |
CEWE Stiftung & Co. KGaA has higher earnings, but lower revenue than Grammer. Grammer 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.
Summary
CEWE Stiftung & Co. KGaA beats Grammer on 7 of the 10 factors compared between the two stocks.