Analyzing Seiko Epson (OTCMKTS:SEKEY) and Sandvik AB (publ) (OTCMKTS:SDVKY)

Seiko Epson (OTCMKTS:SEKEY) and Sandvik AB (publ) (OTCMKTS:SDVKY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Seiko Epson and Sandvik AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seiko Epson	4.24%	6.63%	3.78%
Sandvik AB (publ)	9.92%	16.07%	8.14%

Earnings & Valuation

This table compares Seiko Epson and Sandvik AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seiko Epson	$8.68 billion	0.71	$347.68 million	$0.57	14.00
Sandvik AB (publ)	$11.62 billion	2.28	$1.16 billion	$0.93	22.71

Sandvik AB (publ) has higher revenue and earnings than Seiko Epson. Seiko Epson is trading at a lower price-to-earnings ratio than Sandvik AB (publ), indicating that it is currently the more affordable of the two stocks.

Dividends

Seiko Epson pays an annual dividend of $0.16 per share and has a dividend yield of 2.0%. Sandvik AB (publ) pays an annual dividend of $0.35 per share and has a dividend yield of 1.7%. Seiko Epson pays out 28.1% of its earnings in the form of a dividend. Sandvik AB (publ) pays out 37.6% 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. Seiko Epson is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Seiko Epson has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Sandvik AB (publ) has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Insider and Institutional Ownership

0.7% of Sandvik AB (publ) shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Seiko Epson and Sandvik AB (publ), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seiko Epson	0	0	0	0	0.00
Sandvik AB (publ)	1	1	1	2	2.80

Summary

Sandvik AB (publ) beats Seiko Epson on 13 of the 15 factors compared between the two stocks.

About Seiko Epson

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, manufacturing-related and wearables, and other businesses. It operates through three segments: Printing Solutions, Visual Communications, and Manufacturing-related and Wearables segments. The Printing Solutions segment offers home and office inkjet printers, serial impact dot matrix printers, page printers, color image scanners, dry process office papermaking systems, commercial and industrial inkjet printers, inkjet printheads, printers for use in POS systems, label printers, printer consumables, and others. The Visual Communications segment provides 3LCD projectors for business, education, the home, and event; smart glasses; and others. The Manufacturing-related and Wearables segment offers wristwatches, watch movements, and others; factory automation products, industrial robots, compact injection molders, and other production systems; and crystal units, crystal oscillators, quartz sensors, and others for consumer, automotive, and industrial equipment applications. This segment also provides CMOS LSIs and other chips primarily for consumer electronics and automotive applications; and metal powders for use as raw materials in the production of electronic components, etc., as well as value-added surface finishing in a range of industrial fields. The company also sells PCs, etc. It has operations in Japan, the Philippines, the United States, Indonesia, China, and internationally. Seiko Epson Corporation was incorporated in 1942 and is headquartered in Suwa, Japan.

About Sandvik AB (publ)

Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It also provides metal-cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and components made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. The company serves aerospace, automotive, energy, general engineering, infrastructure, and mining industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.