Critical Contrast: Kawasaki Heavy Industries (OTCMKTS:KWHIY) versus Burnham (OTCMKTS:BURCA)

Kawasaki Heavy Industries (OTCMKTS:KWHIY) and Burnham (OTCMKTS:BURCA) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

1.5% of Burnham shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kawasaki Heavy Industries and Burnham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kawasaki Heavy Industries	3.49%	11.01%	2.58%
Burnham	5.93%	13.16%	7.64%

Volatility and Risk

Kawasaki Heavy Industries has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Burnham has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Dividends

Kawasaki Heavy Industries pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. Burnham pays an annual dividend of $0.92 per share and has a dividend yield of 3.7%. Kawasaki Heavy Industries pays out 24.8% of its earnings in the form of a dividend. Burnham pays out 26.4% 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.

Analyst Recommendations

This is a breakdown of current ratings for Kawasaki Heavy Industries and Burnham, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kawasaki Heavy Industries	0	1	0	1	3.00
Burnham	0	0	0	0	0.00

Valuation and Earnings

This table compares Kawasaki Heavy Industries and Burnham”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kawasaki Heavy Industries	$13.98 billion	0.87	$580.81 million	$1.21	24.05
Burnham	$270.18 million	0.31	$11.95 million	$3.48	7.18

Kawasaki Heavy Industries has higher revenue and earnings than Burnham. Burnham is trading at a lower price-to-earnings ratio than Kawasaki Heavy Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Kawasaki Heavy Industries beats Burnham on 8 of the 14 factors compared between the two stocks.

About Kawasaki Heavy Industries

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.

About Burnham

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.