A.P. Møller - Mærsk A/S (OTCMKTS:AMKBY) and Smurfit Kappa Group (OTCMKTS:SMFKY) are both large-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Valuation & Earnings
This table compares A.P. Møller - Mærsk A/S and Smurfit Kappa Group's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| A.P. Møller - Mærsk A/S | $38.89 billion | 1.26 | $-84,000,000.00 | $0.12 | 101.58 |
| Smurfit Kappa Group | $10.13 billion | 1.24 | $533.12 million | $3.05 | 15.85 |
Smurfit Kappa Group has lower revenue, but higher earnings than A.P. Møller - Mærsk A/S. Smurfit Kappa Group 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 Smurfit Kappa Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| A.P. Møller - Mærsk A/S | 3.88% | 5.59% | 2.91% |
| Smurfit Kappa Group | N/A | N/A | N/A |
Dividends
A.P. Møller - Mærsk A/S pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. Smurfit Kappa Group pays an annual dividend of $0.89 per share and has a dividend yield of 1.8%. 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. Smurfit Kappa Group pays out 29.2% of its earnings in the form of a dividend. Smurfit Kappa Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent ratings for A.P. Møller - Mærsk A/S and Smurfit Kappa Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| A.P. Møller - Mærsk A/S | 2 | 2 | 8 | 0 | 2.50 |
| Smurfit Kappa Group | 0 | 1 | 4 | 0 | 2.80 |
Volatility and Risk
A.P. Møller - Mærsk A/S has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Smurfit Kappa Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Institutional & Insider Ownership
0.1% of A.P. Møller - Mærsk A/S shares are held by institutional investors. Comparatively, 0.7% of Smurfit Kappa Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
A.P. Møller - Mærsk A/S beats Smurfit Kappa Group on 8 of the 14 factors compared between the two stocks.
