Reviewing Sandvik (OTCMKTS:SDVKY) and Enerpac Tool Group (NYSE:EPAC)

Sandvik (OTCMKTS:SDVKY) and Enerpac Tool Group (NYSE:EPAC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Sandvik and Enerpac Tool Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandvik	11.95%	16.64%	8.47%
Enerpac Tool Group	14.65%	24.04%	12.44%

Analyst Recommendations

This is a summary of current ratings and price targets for Sandvik and Enerpac Tool Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandvik	1	1	2	1	2.60
Enerpac Tool Group	0	0	1	0	3.00

Enerpac Tool Group has a consensus price target of $53.00, indicating a potential upside of 42.21%. Given Enerpac Tool Group’s stronger consensus rating and higher possible upside, analysts clearly believe Enerpac Tool Group is more favorable than Sandvik.

Earnings and Valuation

This table compares Sandvik and Enerpac Tool Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sandvik	$11.62 billion	2.63	$1.16 billion	$1.11	21.94
Enerpac Tool Group	$589.51 million	3.42	$85.75 million	$1.63	22.87

Sandvik has higher revenue and earnings than Enerpac Tool Group. Sandvik is trading at a lower price-to-earnings ratio than Enerpac Tool Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Sandvik has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Enerpac Tool Group has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Dividends

Sandvik pays an annual dividend of $0.35 per share and has a dividend yield of 1.4%. Enerpac Tool Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Sandvik pays out 31.5% of its earnings in the form of a dividend. Enerpac Tool Group pays out 2.5% 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.

Institutional & Insider Ownership

0.7% of Sandvik shares are held by institutional investors. Comparatively, 97.7% of Enerpac Tool Group shares are held by institutional investors. 1.1% of Enerpac Tool Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Enerpac Tool Group beats Sandvik on 11 of the 17 factors compared between the two stocks.

About Sandvik

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.

About Enerpac Tool Group

Enerpac Tool Group Corp. manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, France, and internationally. It operates through Industrial Tools & Services and Other segments. The Industrial Tools & Services segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, alternative and renewable energy, civil construction, and other markets. It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products. This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands. The Other segment designs and manufactures synthetic ropes and biomedical textiles. The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp. in January 2020. Enerpac Tool Group Corp. was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.