Comparing Andritz (OTCMKTS:ADRZY) and Secom (OTCMKTS:SOMLY)

Profitability

This table compares Andritz and Secom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Andritz	5.90%	23.35%	6.05%
Secom	8.59%	7.25%	4.88%

Valuation and Earnings

This table compares Andritz and Secom”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Andritz	$9.37 billion	N/A	$552.19 million	$1.09	9.64
Secom	$8.00 billion	2.06	$703.46 million	$0.40	22.10

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

Dividends

Andritz pays an annual dividend of $0.34 per share and has a dividend yield of 3.2%. Secom pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Andritz pays out 31.2% of its earnings in the form of a dividend. Secom pays out 10.0% 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.

Volatility & Risk

Andritz has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Secom has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Summary

Andritz beats Secom on 6 of the 10 factors compared between the two stocks.

About Andritz

Andritz AG provides plants, equipment, and services for pulp and paper industry, metalworking and steel industries, hydropower stations, and solid/liquid separation in the municipal and industrial sectors in Europe, North America, South America, China, Asia, and internationally. It operates through four segments: Pulp & Paper, Metals, Hydro, and Separation. The Pulp & Paper segment supplies technology, automation, and service solutions to produce pulp, paper, board, and tissue; boilers for power generation; flue gas cleaning systems; nonwovens technologies; panelboard production systems; and recycling, shredding, and energy solutions for various waste materials. The Metals segment provides technologies, plants, and digital solutions, including automation and software solutions, and process know-how and services; and solutions for the production and processing of flat products for welding systems and industrial furnaces, as well as services for the metals processing industry. The Hydro segment supplies electromechanical equipment and services for hydropower plants; offers plant diagnosis, refurbishment, modernization, and upgradation of existing hydropower plants; and pumps for irrigation, water supply, and flood control, as well as turbo generators. The Separation segment offers mechanical and thermal technologies, as well as services and related automation solutions for solid/liquid separation to serve chemical, environmental, food, mining, and minerals industries; and technologies and services to produce animal feed and biomass pellets. The company was founded in 1852 and is headquartered in Graz, Austria.

About Secom

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.