THK (OTCMKTS:THKLY) & WEG (OTCMKTS:WEGZY) Head to Head Comparison

THK (OTCMKTS:THKLY) and WEG (OTCMKTS:WEGZY) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares THK and WEG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
THK	N/A	N/A	N/A
WEG	15.58%	31.02%	14.45%

Analyst Ratings

This is a summary of recent ratings and price targets for THK and WEG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THK	0	1	0	0	2.00
WEG	0	2	1	0	2.33

Valuation & Earnings

This table compares THK and WEG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
THK	$1.61 billion	3.05	-$468.27 million	$0.30	68.60
WEG	$7.31 billion	5.60	$1.14 billion	$0.28	34.79

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

Dividends

THK pays an annual dividend of $0.37 per share and has a dividend yield of 1.8%. WEG pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. THK pays out 123.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WEG pays out 17.9% of its earnings in the form of a dividend.

Summary

WEG beats THK on 9 of the 12 factors compared between the two stocks.

About THK

THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About WEG

WEG S.A. engages in the production and sale of capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; gear units and geared motors; hydraulic and steam turbines; frequency converters; motor starters and maneuver devices; control and protection of electric circuits for industrial automation; power sockets and switches; and electric traction solutions for heavy vehicles, SUV vehicles, locomotives, and sea transportation capital goods. It also provides solutions for the generation of renewable and distributed energy through hydro, thermal, biomass, wind, and solar energy power plants; solutions for industry; UPSs and alternators for groups of generators; conventional and movable electric substations; industrial electrical and electronic systems; industrial paint and varnish; and paints for automotive repainting. WEG S.A. was founded in 1961 and is headquartered in Jaraguá do Sul, Brazil.