SMC (OTCMKTS:SMCAY) and Schneider Electric S.E. (OTCMKTS:SBGSY) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.
Earnings & Valuation
This table compares SMC and Schneider Electric S.E.'s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SMC | $4.84 billion | 8.51 | $1.02 billion | $0.76 | 40.21 |
Schneider Electric S.E. | $30.07 billion | 3.10 | $2.70 billion | $1.18 | 27.84 |
Schneider Electric S.E. has higher revenue and earnings than SMC. Schneider Electric S.E. is trading at a lower price-to-earnings ratio than SMC, indicating that it is currently the more affordable of the two stocks.
Dividends
SMC pays an annual dividend of $0.14 per share and has a dividend yield of 0.5%. Schneider Electric S.E. pays an annual dividend of $0.41 per share and has a dividend yield of 1.2%. SMC pays out 18.4% of its earnings in the form of a dividend. Schneider Electric S.E. pays out 34.7% 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.
Profitability
This table compares SMC and Schneider Electric S.E.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SMC | 20.08% | 8.17% | 7.34% |
Schneider Electric S.E. | N/A | N/A | N/A |
Volatility and Risk
SMC has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Schneider Electric S.E. has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for SMC and Schneider Electric S.E., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SMC | 0 | 1 | 1 | 0 | 2.50 |
Schneider Electric S.E. | 0 | 3 | 7 | 0 | 2.70 |
Institutional & Insider Ownership
0.8% of SMC shares are held by institutional investors. Comparatively, 0.5% of Schneider Electric S.E. shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
SMC beats Schneider Electric S.E. on 8 of the 14 factors compared between the two stocks.