Critical Review: ZTE (OTCMKTS:ZTCOY) & KUKA Aktiengesellschaft (OTCMKTS:KUKAY)

Dividends

KUKA Aktiengesellschaft pays an annual dividend of $0.06 per share and has a dividend yield of 0.1%. ZTE pays an annual dividend of $0.07 per share and has a dividend yield of 1.7%. ZTE pays out 14.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares KUKA Aktiengesellschaft and ZTE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KUKA Aktiengesellschaft	$3.89 billion	0.80	-$46.14 million	N/A	N/A
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60

ZTE has higher revenue and earnings than KUKA Aktiengesellschaft.

Profitability

This table compares KUKA Aktiengesellschaft and ZTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KUKA Aktiengesellschaft	1.18%	2.87%	1.06%
ZTE	5.89%	13.25%	4.04%

Volatility and Risk

KUKA Aktiengesellschaft has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Summary

ZTE beats KUKA Aktiengesellschaft on 6 of the 9 factors compared between the two stocks.

About KUKA Aktiengesellschaft

KUKA Aktiengesellschaft, an automation company, provides robot-based automation solutions worldwide. It operates through five segments: Systems, Robotics, Swisslog, Swisslog Healthcare, and China. The company manufactures and supplies industrial, collaborative, and mobile robots, as well as robot controllers, software, and digital services for industrial Internet of Things. It also offers automated guided vehicles and other automation components to production cells, turnkey systems, and networked production with the aid of cloud-based IT tools; individual system components, tools and fixtures, and automated production cells; and robot-based and modular manufacturing cells, as well as support services. In addition, the company offers automated solutions for hospitals, warehouses, and distribution centers; and warehouse management systems and healthcare systems. It serves customers in the automotive, electronics, e-commerce/retail, consumer goods, metal and plastic, healthcare, and other industries. The company was formerly known as Industrie-Werke Karlsruhe Augsburg Aktiengesellschaft and changed its name to KUKA Aktiengesellschaft in 2007. The company was founded in 1898 and is headquartered in Augsburg, Germany. KUKA Aktiengesellschaft is a subsidiary of Midea Electric Netherlands (I) B.V.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.