ALSTOM/ADR (OTCMKTS:ALSMY) and Nidec (OTCMKTS:NJDCY) are both large-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
This is a breakdown of recent ratings and target prices for ALSTOM/ADR and Nidec, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider and Institutional Ownership
0.1% of ALSTOM/ADR shares are held by institutional investors. Comparatively, 0.1% of Nidec shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares ALSTOM/ADR and Nidec’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ALSTOM/ADR||$9.12 billion||1.21||$519.21 million||$0.22||22.36|
|Nidec||$14.09 billion||2.76||$551.69 million||$0.29||56.28|
Nidec has higher revenue and earnings than ALSTOM/ADR. ALSTOM/ADR is trading at a lower price-to-earnings ratio than Nidec, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ALSTOM/ADR has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Nidec has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
ALSTOM/ADR pays an annual dividend of $0.47 per share and has a dividend yield of 9.6%. Nidec pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. ALSTOM/ADR pays out 213.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nidec pays out 79.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares ALSTOM/ADR and Nidec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nidec beats ALSTOM/ADR on 11 of the 13 factors compared between the two stocks.
ALSTOM/ADR Company Profile
Alstom SA develops and markets systems, equipment, and services for the transport sector in Europe, the Americas, Asia and Pacific, the Middle-East, and Africa. The company offers metros, tramways, tram-trains, suburban trains, regional trains, high-speed trains, and passengers and freight locomotives; and signaling products, such as rail control systems, security and control, trackside, and interlocking products. It is also involved in the design and installation solutions for track laying; the electrification of and power supply to lines; and supply and installation electromechanical equipment. In addition, the company provides urban and main-line rail systems to manage trains, signaling, infrastructure, and services; and maintenance, modernization, parts and repair, and support services. Further, it offers various components, including bogies, motors, traction systems, switchgears, auxiliary converters, traction transformers, feeding systems, and dampers. Alstom SA has a strategic partnership with Cosmotech to develop a new application to improve the efficiency of a rail system. Alstom SA was incorporated in 1992 and is headquartered in Saint-Ouen, France.
Nidec Company Profile
Nidec Corporation manufactures and sells motors and other electronic products worldwide. It offers brushless DC, brush DC, induction, SR, synchronous, servo, and stepping motors, as well as drive circuits; fans and blowers, such as DC axial flow, DC blower, and AC axial flow fans; and machinery, including inspection and measuring systems, automation units, control equipment, marking devices, and optical devices. The company also provides electronic and optical components comprising mechanical system components, optical system units, sensors, and electronic system components; special motors, including pump, vibration, multifunction hybrid, and hard disk drive motors, as well as motor drive units, polygon laser scanners, and diaphragm and medical pumps; automotive components; and other products that include music boxes and pottery craftwork equipment. The company's products have applications in the information and telecommunications equipment, office equipment, home appliances, automobiles, industrial equipment, and environmental energy industries. In addition, it engages in the provision of insurance services; leasing and management of real-estate properties; sale of various range of products; operation of company stores; loan and lease business; and contract business related to temporary staffing, hotel business, sales of beverages, and others. Nidec Corporation was founded in 1973 and is headquartered in Kyoto, Japan.
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