Vestas Wind Systems A/S (OTCMKTS:VWDRY) and AGC (OTCMKTS:ASGLY) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Risk and Volatility
Vestas Wind Systems A/S has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, AGC has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Profitability
This table compares Vestas Wind Systems A/S and AGC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Vestas Wind Systems A/S | 3.12% | 13.89% | 3.16% |
| AGC | 2.05% | 2.36% | 1.21% |
Institutional & Insider Ownership
0.1% of Vestas Wind Systems A/S shares are held by institutional investors. Comparatively, 0.1% of AGC shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Vestas Wind Systems A/S and AGC's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Vestas Wind Systems A/S | $13.61 billion | 2.98 | $788.48 million | $1.33 | 50.39 |
| AGC | $13.93 billion | 0.75 | $408.80 million | $0.37 | 24.70 |
Vestas Wind Systems A/S has higher earnings, but lower revenue than AGC. AGC is trading at a lower price-to-earnings ratio than Vestas Wind Systems A/S, indicating that it is currently the more affordable of the two stocks.
Dividends
Vestas Wind Systems A/S pays an annual dividend of $0.29 per share and has a dividend yield of 0.4%. AGC pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Vestas Wind Systems A/S pays out 21.8% of its earnings in the form of a dividend. AGC pays out 37.8% 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.
Analyst Ratings
This is a summary of recent ratings and price targets for Vestas Wind Systems A/S and AGC, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Vestas Wind Systems A/S | 2 | 5 | 7 | 0 | 2.36 |
| AGC | 0 | 0 | 2 | 0 | 3.00 |
Summary
Vestas Wind Systems A/S beats AGC on 11 of the 14 factors compared between the two stocks.
