Rheinmetall (OTCMKTS:RNMBY) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) Financial Analysis

Rheinmetall (OTCMKTS:RNMBY) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) are both large-cap aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Volatility and Risk

Rheinmetall has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Rolls-Royce Holdings PLC has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Rheinmetall and Rolls-Royce Holdings PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rheinmetall	N/A	N/A	N/A
Rolls-Royce Holdings PLC	N/A	N/A	N/A

Earnings & Valuation

This table compares Rheinmetall and Rolls-Royce Holdings PLC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rheinmetall	$10.55 billion	8.02	$775.87 million	$2.52	146.47
Rolls-Royce Holdings PLC	$27.96 billion	5.15	$7.70 billion	N/A	N/A

Rolls-Royce Holdings PLC has higher revenue and earnings than Rheinmetall.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rheinmetall and Rolls-Royce Holdings PLC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rheinmetall	1	0	5	1	2.86
Rolls-Royce Holdings PLC	0	2	2	0	2.50

Insider and Institutional Ownership

0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Rheinmetall pays an annual dividend of $1.26 per share and has a dividend yield of 0.3%. Rolls-Royce Holdings PLC pays an annual dividend of $0.14 per share and has a dividend yield of 0.8%. Rheinmetall pays out 50.0% of its earnings in the form of a dividend.

Summary

Rolls-Royce Holdings PLC beats Rheinmetall on 6 of the 10 factors compared between the two stocks.

About Rheinmetall

Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.

About Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.