Head to Head Analysis: Broadwind Energy (NASDAQ:BWEN) & Kawasaki Heavy Industries (OTCMKTS:KWHIY)

Broadwind Energy (NASDAQ:BWEN) and Kawasaki Heavy Industries (OTCMKTS:KWHIY) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Broadwind Energy and Kawasaki Heavy Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadwind Energy	1	1	2	0	2.25
Kawasaki Heavy Industries	0	1	0	0	2.00

Broadwind Energy presently has a consensus price target of $4.50, suggesting a potential upside of 96.51%. Given Broadwind Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Broadwind Energy is more favorable than Kawasaki Heavy Industries.

Institutional and Insider Ownership

33.3% of Broadwind Energy shares are owned by institutional investors. 6.4% of Broadwind Energy shares are owned by insiders. 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 Broadwind Energy and Kawasaki Heavy Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadwind Energy	-1.52%	-3.71%	-1.71%
Kawasaki Heavy Industries	3.49%	10.50%	2.55%

Valuation & Earnings

This table compares Broadwind Energy and Kawasaki Heavy Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadwind Energy	$143.14 million	0.37	$1.15 million	($0.10)	-22.90
Kawasaki Heavy Industries	$13.98 billion	0.93	$580.81 million	$1.21	25.63

Kawasaki Heavy Industries has higher revenue and earnings than Broadwind Energy. Broadwind Energy is trading at a lower price-to-earnings ratio than Kawasaki Heavy Industries, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Broadwind Energy has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Kawasaki Heavy Industries has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Summary

Kawasaki Heavy Industries beats Broadwind Energy on 8 of the 14 factors compared between the two stocks.

About Broadwind Energy

Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.

About Kawasaki Heavy Industries

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.