Analyzing Andritz (OTCMKTS:ADRZY) & Seven & i (OTCMKTS:SVNDY)

Seven & i (OTCMKTS:SVNDY) and Andritz (OTCMKTS:ADRZY) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Institutional and Insider Ownership

0.0% of Seven & i 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Seven & i and Andritz, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven & i	0	0	0	0	N/A
Andritz	0	0	0	0	N/A

Earnings & Valuation

This table compares Seven & i and Andritz’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven & i	$79.46 billion	0.44	$1.56 billion	$0.61	21.51
Andritz	$9.37 billion	0.61	$552.14 million	$1.11	9.98

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

Dividends

Seven & i pays an annual dividend of $0.09 per share and has a dividend yield of 0.7%. Andritz pays an annual dividend of $0.34 per share and has a dividend yield of 3.1%. Seven & i pays out 14.7% of its earnings in the form of a dividend. Andritz pays out 30.6% 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.

Profitability

This table compares Seven & i and Andritz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven & i	1.94%	11.48%	4.06%
Andritz	5.94%	26.26%	6.09%

Risk & Volatility

Seven & i has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Andritz has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

Andritz beats Seven & i on 7 of the 12 factors compared between the two stocks.

About Seven & i

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

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.