Head to Head Review: Omega Flex (NASDAQ:OFLX) & Wartsila (OTCMKTS:WRTBY)

Wartsila (OTCMKTS:WRTBY) and Omega Flex (NASDAQ:OFLX) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Earnings and Valuation

This table compares Wartsila and Omega Flex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wartsila	$7.82 billion	2.15	$708.26 million	$0.24	23.67
Omega Flex	$98.05 million	2.81	$14.83 million	$1.05	25.97

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

Insider and Institutional Ownership

36.1% of Omega Flex shares are held by institutional investors. 65.2% of Omega Flex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Wartsila and Omega Flex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wartsila	3	2	2	0	1.86
Omega Flex	1	0	0	0	1.00

Volatility & Risk

Wartsila has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Omega Flex has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares Wartsila and Omega Flex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wartsila	9.12%	25.16%	7.81%
Omega Flex	10.73%	12.71%	10.29%

Dividends

Wartsila pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Omega Flex pays an annual dividend of $1.36 per share and has a dividend yield of 5.0%. Wartsila pays out 16.7% of its earnings in the form of a dividend. Omega Flex pays out 129.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Flex has increased its dividend for 7 consecutive years. Omega Flex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Omega Flex beats Wartsila on 9 of the 16 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 Omega Flex

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.