A.P. Møller - Mærsk A/S (OTCMKTS:AMKBY) and Randstad (OTCMKTS:RANJY) are both large-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Volatility and Risk
A.P. Møller - Mærsk A/S has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Randstad has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Dividends
A.P. Møller - Mærsk A/S pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. Randstad pays an annual dividend of $0.77 per share and has a dividend yield of 2.1%. A.P. Møller - Mærsk A/S pays out 141.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Randstad pays out 33.0% of its earnings in the form of a dividend. Randstad is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
0.1% of A.P. Møller - Mærsk A/S shares are owned by institutional investors. Comparatively, 0.2% of Randstad shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations for A.P. Møller - Mærsk A/S and Randstad, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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A.P. Møller - Mærsk A/S | 2 | 2 | 8 | 0 | 2.50 |
Randstad | 2 | 4 | 5 | 0 | 2.27 |
Earnings and Valuation
This table compares A.P. Møller - Mærsk A/S and Randstad's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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A.P. Møller - Mærsk A/S | $38.89 billion | 1.23 | $-84,000,000.00 | $0.12 | 99.58 |
Randstad | $26.52 billion | 0.51 | $678.72 million | $2.33 | 15.88 |
Randstad has lower revenue, but higher earnings than A.P. Møller - Mærsk A/S. Randstad is trading at a lower price-to-earnings ratio than A.P. Møller - Mærsk A/S, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares A.P. Møller - Mærsk A/S and Randstad's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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A.P. Møller - Mærsk A/S | 3.88% | 5.59% | 2.91% |
Randstad | 1.26% | 11.49% | 5.25% |
Summary
Randstad beats A.P. Møller - Mærsk A/S on 9 of the 14 factors compared between the two stocks.