Financial Comparison: Sandvik (SDVKY) vs. Its Competitors

Sandvik (OTCMKTS:SDVKY) is one of 436 publicly-traded companies in the “Machinery” industry, but how does it contrast to its rivals? We will compare Sandvik to similar businesses based on the strength of its analyst recommendations, dividends, risk, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares Sandvik and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandvik	13.85%	19.84%	10.83%
Sandvik Competitors	-1,035.57%	-36.60%	-0.39%

Dividends

Sandvik pays an annual dividend of $0.41 per share and has a dividend yield of 1.1%. Sandvik pays out 25.2% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.5% of their earnings in the form of a dividend. Sandvik lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Sandvik and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandvik	1	5	5	1	2.50
Sandvik Competitors	4216	14736	18264	809	2.41

As a group, “Machinery” companies have a potential upside of 30.83%. Given Sandvik’s rivals higher probable upside, analysts plainly believe Sandvik has less favorable growth aspects than its rivals.

Risk & Volatility

Sandvik has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Sandvik’s rivals have a beta of 4.54, indicating that their average stock price is 354% more volatile than the S&P 500.

Insider and Institutional Ownership

0.7% of Sandvik shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are owned by institutional investors. 14.1% of shares of all “Machinery” companies are owned by company insiders. 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.

Valuation & Earnings

This table compares Sandvik and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sandvik	$12.34 billion	$1.50 billion	22.13
Sandvik Competitors	$4.64 billion	$362.62 million	6.26

Sandvik has higher revenue and earnings than its rivals. Sandvik is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Sandvik beats its rivals on 8 of the 15 factors compared.

Sandvik Company Profile

Sandvik is a Sweden-based engineering group that develops equipment, tools, services and digital solutions for mining, infrastructure and manufacturing customers. Founded in 1862, the company has a long history in materials and industrial engineering. Its business includes machinery and systems for mining and rock excavation, equipment and services for processing rock, and metal-cutting tools and tooling systems for industrial manufacturers. Sandvik also provides related aftermarket support and digital solutions, including technologies used in mining and manufacturing operations.