Wartsila (OTCMKTS:WRTBY) & Kone Oyj (OTCMKTS:KNYJY) Critical Review

Wartsila (OTCMKTS:WRTBY) and Kone Oyj (OTCMKTS:KNYJY) are both large-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Dividends

Wartsila pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Kone Oyj pays an annual dividend of $0.42 per share and has a dividend yield of 1.3%. Wartsila pays out 15.0% of its earnings in the form of a dividend. Kone Oyj pays out 40.8% 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wartsila and Kone Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wartsila	1	2	0	0	1.67
Kone Oyj	1	1	0	0	1.50

Profitability

This table compares Wartsila and Kone Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wartsila	8.19%	22.76%	7.28%
Kone Oyj	8.69%	39.38%	11.08%

Valuation and Earnings

This table compares Wartsila and Kone Oyj”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wartsila	$6.98 billion	2.59	$544.30 million	$0.20	30.58
Kone Oyj	$12.01 billion	2.46	$1.03 billion	$1.03	31.62

Kone Oyj has higher revenue and earnings than Wartsila. Wartsila is trading at a lower price-to-earnings ratio than Kone Oyj, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Wartsila has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Kone Oyj has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

Kone Oyj beats Wartsila on 8 of the 12 factors compared between the two stocks.

About Wartsila

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers engine power plant products, such as gas, multi-fuel, and diesel engines; GEMS Digital Energy Platform, a smart software platform that monitors, controls, and optimizes energy assets on site and portfolio levels; GridSolv Quantum, a fully integrated energy storage solution, which enables ease of deployment and sustainable energy optimization; GEMS Power Plant Controllers; GEMS Fleet Director, which provides centralized real-time visibility into a global fleet of power plants; and GEMS Grid Controller that conducts intelligent grid control and optimized power management for microgrids of various sizes. The company also provides GEMS smart energy management software platform to remotely monitor, operate, identify, and diagnose assets; lifecycle solutions for power plants; power and propulsion products, such as electric shipping and hybrid ships, engine and generating sets, propulsors and gears, and shaft line solutions; liquid and gas handling products, including ballast water management, freshwater generation, waste and wastewater treatment, gas solutions, and exhaust treatment equipment; port and fleet optimization; simulation and training solutions; and automation, navigation, and control systems. The company was founded in 1834 and is headquartered in Helsinki, Finland.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.