Critical Review: DMC Global (NASDAQ:BOOM) versus Siemens (OTCMKTS:SIEGY)

DMC Global (NASDAQ:BOOM) and Siemens (OTCMKTS:SIEGY) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares DMC Global and Siemens’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DMC Global	-15.73%	-0.01%	N/A
Siemens	12.61%	13.19%	5.11%

Institutional and Insider Ownership

77.6% of DMC Global shares are owned by institutional investors. Comparatively, 0.8% of Siemens shares are owned by institutional investors. 3.4% of DMC Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for DMC Global and Siemens, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DMC Global	0	1	1	0	2.50
Siemens	0	3	0	1	2.50

DMC Global presently has a consensus price target of $16.25, suggesting a potential upside of 92.54%. Given DMC Global’s higher probable upside, analysts plainly believe DMC Global is more favorable than Siemens.

Valuation and Earnings

This table compares DMC Global and Siemens”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DMC Global	$642.85 million	0.27	-$94.45 million	($8.16)	-1.03
Siemens	$82.35 billion	2.53	$9.00 billion	$6.62	19.66

Siemens has higher revenue and earnings than DMC Global. DMC Global is trading at a lower price-to-earnings ratio than Siemens, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

DMC Global has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Siemens has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Summary

Siemens beats DMC Global on 9 of the 14 factors compared between the two stocks.

About DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.

About Siemens

Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Digital Industries segment provides automation systems and software for factories, numerical control systems, servo motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and the Mendix cloud-native low-code application development platform. The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products. The Mobility segment provides rail passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives and solutions for automated transportation; products and solutions for rail automation; electrification products; maintenance and digital services; and digital and cloud-based solutions, and related services. The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting and training services. The SFS segment offers debt and equity investments; leasing, lending, and working capital, structured, equipment, and project financing; and financial advisory services. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.