Rheinmetall (ETR:RHM) and Jungheinrich Aktiengesellschaft (ETR:JUN3) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Profitability
This table compares Rheinmetall and Jungheinrich Aktiengesellschaft's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Rheinmetall | N/A | N/A | N/A |
Jungheinrich Aktiengesellschaft | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Rheinmetall and Jungheinrich Aktiengesellschaft, as reported 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 |
Jungheinrich Aktiengesellschaft | 1 | 2 | 3 | 0 | 2.33 |
Rheinmetall currently has a consensus price target of €109.90, indicating a potential upside of 19.69%. Jungheinrich Aktiengesellschaft has a consensus price target of €24.33, indicating a potential downside of 40.88%. Given Rheinmetall's stronger consensus rating and higher possible upside, equities research analysts clearly believe Rheinmetall is more favorable than Jungheinrich Aktiengesellschaft.
Dividends
Rheinmetall pays an annual dividend of €2.00 per share and has a dividend yield of 2.2%. Jungheinrich Aktiengesellschaft pays an annual dividend of €0.43 per share and has a dividend yield of 1.0%. Rheinmetall pays out -320.0% of its earnings in the form of a dividend. Jungheinrich Aktiengesellschaft pays out 29.0% 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.
Valuation & Earnings
This table compares Rheinmetall and Jungheinrich Aktiengesellschaft's 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 | 0.67 | $-26,998,437.50 | (€0.63) | -146.91 |
Jungheinrich Aktiengesellschaft | $3.81 billion | 0.52 | $71.18 million | €1.48 | 27.75 |
Jungheinrich Aktiengesellschaft has lower revenue, but higher earnings than Rheinmetall. Rheinmetall is trading at a lower price-to-earnings ratio than Jungheinrich Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.
Summary
Rheinmetall beats Jungheinrich Aktiengesellschaft on 7 of the 10 factors compared between the two stocks.