Knorr-Bremse (OTCMKTS:KNRRY) vs. Martinrea International (OTCMKTS:MRETF) Head-To-Head Contrast

Martinrea International (OTCMKTS:MRETF) and Knorr-Bremse (OTCMKTS:KNRRY) are both consumer cyclical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Dividends

Martinrea International pays an annual dividend of $0.09 per share and has a dividend yield of 1.3%. Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%. Martinrea International pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Knorr-Bremse pays out 117.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Martinrea International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

35.7% of Martinrea International shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Martinrea International and Knorr-Bremse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Martinrea International	N/A	N/A	N/A
Knorr-Bremse	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for Martinrea International and Knorr-Bremse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Martinrea International	0	0	0	0	0.00
Knorr-Bremse	1	2	5	0	2.50

Earnings and Valuation

This table compares Martinrea International and Knorr-Bremse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Martinrea International	N/A	N/A	N/A	$0.09	77.37
Knorr-Bremse	$8.84 billion	2.17	$604.17 million	$0.28	106.10

Knorr-Bremse has higher revenue and earnings than Martinrea International. Martinrea International is trading at a lower price-to-earnings ratio than Knorr-Bremse, indicating that it is currently the more affordable of the two stocks.

Summary

Knorr-Bremse beats Martinrea International on 5 of the 8 factors compared between the two stocks.

About Martinrea International

Martinrea International Inc. engages in the design, development, and manufacturing of engineered, value-added lightweight structures and propulsion systems worldwide. It offers lightweight structure products, including knuckles/control arms/links; subframes integral/fabricated products; complex assemblies; body structures; exterior trims; and trailer hitches. The company also provides engine blocks; transmission housings; graphene and nylon coated brake lines; fluid and thermal product, such as fuel filler pipes, brake lines, and thermal management components. In addition, the company offers flexible manufacturing products comprising front and rear suspension modules, front vertical corner modules, bus frame assemblies, structural parts and fabrications, and metallic tanks and reservoirs. The company was formerly known as Royal Laser Tech Corporation and changed its name to Martinrea International Inc. in June 2002. Martinrea International Inc. was incorporated in 1987 and is headquartered in Vaughan, Canada.

About Knorr-Bremse

Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.