Wirecard (ETR:WDI) and Dr. Hönle AG (HNL.F) (ETR:HNL) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Profitability
This table compares Wirecard and Dr. Hönle AG (HNL.F)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Wirecard | N/A | N/A | N/A |
Dr. Hönle AG (HNL.F) | N/A | N/A | N/A |
Valuation and Earnings
This table compares Wirecard and Dr. Hönle AG (HNL.F)'s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Wirecard | $2.58 billion | 0.02 | $481.54 million | €3.90 | 0.11 |
Dr. Hönle AG (HNL.F) | $95.34 million | 2.82 | $5.11 million | €0.84 | 52.61 |
Wirecard has higher revenue and earnings than Dr. Hönle AG (HNL.F). Wirecard is trading at a lower price-to-earnings ratio than Dr. Hönle AG (HNL.F), indicating that it is currently the more affordable of the two stocks.
Dividends
Wirecard pays an annual dividend of €0.20 per share and has a dividend yield of 48.7%. Dr. Hönle AG (HNL.F) pays an annual dividend of €0.50 per share and has a dividend yield of 1.1%. Wirecard pays out 5.1% of its earnings in the form of a dividend. Dr. Hönle AG (HNL.F) pays out 59.3% 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. Wirecard is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current recommendations and price targets for Wirecard and Dr. Hönle AG (HNL.F), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Wirecard | 3 | 5 | 6 | 0 | 2.21 |
Dr. Hönle AG (HNL.F) | 0 | 0 | 2 | 0 | 3.00 |
Wirecard currently has a consensus target price of €152.07, suggesting a potential upside of 36,909.35%. Dr. Hönle AG (HNL.F) has a consensus target price of €66.75, suggesting a potential upside of 50.51%. Given Wirecard's higher possible upside, research analysts clearly believe Wirecard is more favorable than Dr. Hönle AG (HNL.F).
Summary
Wirecard beats Dr. Hönle AG (HNL.F) on 7 of the 10 factors compared between the two stocks.