Critical Contrast: Savaria (SISXF) & Its Peers

Savaria (OTCMKTS:SISXF) is one of 178 public companies in the “Specialty Industrial Machinery” industry, but how does it compare to its peers? We will compare Savaria to related companies based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, risk and valuation.

Institutional & Insider Ownership

6.6% of Savaria shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Specialty Industrial Machinery” companies are owned by institutional investors. 23.0% of shares of all “Specialty Industrial Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Savaria and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Savaria	N/A	N/A	52.45
Savaria Competitors	$4.72 billion	$407.48 million	514.31

Savaria’s peers have higher revenue and earnings than Savaria. Savaria is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Savaria and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savaria	0	0	1	0	3.00
Savaria Competitors	1161	4857	6186	95	2.42

Savaria currently has a consensus target price of $23.00, indicating a potential upside of 99.31%. As a group, “Specialty Industrial Machinery” companies have a potential upside of 17.36%. Given Savaria’s stronger consensus rating and higher probable upside, analysts plainly believe Savaria is more favorable than its peers.

Profitability

This table compares Savaria and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Savaria	N/A	N/A	N/A
Savaria Competitors	-6.26%	-4.62%	1.74%

Dividends

Savaria pays an annual dividend of $0.13 per share and has a dividend yield of 1.1%. Savaria pays out 56.8% of its earnings in the form of a dividend. As a group, “Specialty Industrial Machinery” companies pay a dividend yield of 3.5% and pay out 28.5% of their earnings in the form of a dividend. Savaria lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Savaria peers beat Savaria on 8 of the 13 factors compared.

Savaria Company Profile

Savaria Corporation provides accessibility solutions for the elderly and physically challenged people in Canada, the United States, the United Kingdom, rest of Europe, and internationally. The company operates through three segments: Accessibility, Patient Care, and Adapted Vehicles. The Accessibility segment designs, manufactures, distributes, and installs accessibility products, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair platform lifts for commercial and residential applications, and commercial accessibility and home elevators. The Patient Care segment manufactures and distributes therapeutic support surfaces and other pressure management products for the medical and medical beds, as well as offers medical equipment and solutions for the safe handling of patients. The Adapted Vehicles segment provides vehicles for people with mobility challenges for personal or commercial use. It sells its products through dealers and by direct stores to end-user customers. The company was founded in 1979 and is based in Laval, Canada.