Rheinmetall (ETR:RHM) and Pfeiffer Vacuum Technology (ETR:PFV) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of current recommendations and price targets for Rheinmetall and Pfeiffer Vacuum Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Rheinmetall | 0 | 1 | 10 | 0 | 2.91 |
Pfeiffer Vacuum Technology | 2 | 2 | 1 | 0 | 1.80 |
Rheinmetall presently has a consensus price target of €109.00, indicating a potential upside of 28.24%. Pfeiffer Vacuum Technology has a consensus price target of €142.63, indicating a potential downside of 18.41%. Given Rheinmetall's stronger consensus rating and higher probable upside, research analysts plainly believe Rheinmetall is more favorable than Pfeiffer Vacuum Technology.
Dividends
Rheinmetall pays an annual dividend of €2.00 per share and has a dividend yield of 2.4%. Pfeiffer Vacuum Technology pays an annual dividend of €1.60 per share and has a dividend yield of 0.9%. Rheinmetall pays out -320.0% of its earnings in the form of a dividend. Pfeiffer Vacuum Technology pays out 50.0% 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. Rheinmetall is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Rheinmetall and Pfeiffer Vacuum Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Rheinmetall | N/A | N/A | N/A |
Pfeiffer Vacuum Technology | N/A | N/A | N/A |
Earnings and Valuation
This table compares Rheinmetall and Pfeiffer Vacuum Technology's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Rheinmetall | $5.95 billion | 0.62 | $-26,998,437.50 | (€0.63) | -136.00 |
Pfeiffer Vacuum Technology | $618.67 million | 2.79 | $31.58 million | €3.20 | 54.63 |
Pfeiffer Vacuum Technology has lower revenue, but higher earnings than Rheinmetall. Rheinmetall is trading at a lower price-to-earnings ratio than Pfeiffer Vacuum Technology, indicating that it is currently the more affordable of the two stocks.
Summary
Rheinmetall beats Pfeiffer Vacuum Technology on 6 of the 10 factors compared between the two stocks.