Comparing Orkla ASA (OTCMKTS:ORKLY) and BAE Systems (OTCMKTS:BAESY)

Orkla ASA (OTCMKTS:ORKLY) and BAE Systems (OTCMKTS:BAESY) are both multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Orkla ASA and BAE Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orkla ASA	7.68%	12.48%	6.55%
BAE Systems	N/A	N/A	N/A

Insider and Institutional Ownership

0.2% of BAE Systems shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Orkla ASA has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, BAE Systems has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Dividends

Orkla ASA pays an annual dividend of $0.19 per share and has a dividend yield of 2.9%. BAE Systems pays an annual dividend of $1.80 per share and has a dividend yield of 2.8%. Orkla ASA pays out 38.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for Orkla ASA and BAE Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orkla ASA	0	0	2	0	3.00
BAE Systems	1	1	3	0	2.40

BAE Systems has a consensus target price of $475.00, suggesting a potential upside of 628.53%. Given BAE Systems’ higher probable upside, analysts clearly believe BAE Systems is more favorable than Orkla ASA.

Valuation & Earnings

This table compares Orkla ASA and BAE Systems’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orkla ASA	$6.43 billion	N/A	$492.43 million	$0.50	13.08
BAE Systems	$24.98 billion	1.98	$2.31 billion	N/A	N/A

BAE Systems has higher revenue and earnings than Orkla ASA.

Summary

BAE Systems beats Orkla ASA on 7 of the 12 factors compared between the two stocks.

About Orkla ASA

Orkla ASA engages in branded consumer goods, and industrial and financial investment businesses. The company offers branded products, including frozen pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat meals through grocery channels, as well as food service, convenience stores, and petrol stations. It also provides confectionery, biscuit, and snack products; and spices, masalas, and various food products based on dried mixes. In addition, the company offers personal care, hygiene, laundry detergent, and cleaning products; dietary supplement, oral care, sport nutrition, and weight control products; wound care products and first aid equipment; painting tools and accessories; basic and wool garments; and professional cleaning products. It operates Gymgrossisten, Proteinfabrikken, Bodystore, and Fitnesstukku e-commerce portals for health and sports nutrition products; and restaurants. Additionally, the company supplies margarine and butter blends, bread and cake improvers and mixes, yeast, marzipan, and ice cream ingredients; produces and supplies hydro power to the Nordic power market; and develops and sells real estate properties. It offers its food products under the Grandiosa, TORO, Stabburet, Felix, Paulúns, Fun Light, Abba, Beauvais, Kalles, Den Gamle Fabrik, Hamé, and Vitana brands; confectionery and snacks under the KiMs, Nidar, Stratos, Sætre, Göteborgs Kex, OLW, Panda, Laima, Selga, Taffel, Kalev, and Nói Síríus brands; home and personal care products under Zalo, OMO, Blenda, Jif, Define, Solidox, Dr Greve, Lano, and Bliw; health produtcs under Möller's, Jordan, Vitalab, OSL, Cederroth First Aid, Salvequick, Livol, Nutrilett, Maxim, Collett, Solidox and CuraMed brands; and food ingredients under the Odense, Mors Hjemmebakte, KronJäst, Bakkedal, and NATURLI brands. It has operations in Norway, Sweden, Denmark, Finland, Iceland, the Baltics, rest of Europe, and internationally. The company was founded in 1918 and is headquartered in Oslo, Norway.

About BAE Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.