Reviewing Global Industrial (NYSE:GIC) and Siemens (OTCMKTS:SIEGY)

Siemens (OTCMKTS:SIEGY) and Global Industrial (NYSE:GIC) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens	1	7	1	1	2.20
Global Industrial	0	0	0	0	0.00

Volatility and Risk

Siemens has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Global Industrial has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Siemens	12.59%	12.61%	5.01%
Global Industrial	5.00%	22.89%	12.14%

Earnings and Valuation

This table compares Siemens and Global Industrial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens	$82.35 billion	2.62	$9.00 billion	$6.75	19.94
Global Industrial	$1.32 billion	1.09	$61.00 million	$1.71	21.89

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

Institutional & Insider Ownership

0.8% of Siemens shares are owned by institutional investors. Comparatively, 31.2% of Global Industrial shares are owned by institutional investors. 65.3% of Global Industrial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Siemens pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. Global Industrial pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Siemens pays out 29.6% of its earnings in the form of a dividend. Global Industrial pays out 60.8% 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. Global Industrial has raised its dividend for 9 consecutive years. Global Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Siemens beats Global Industrial on 10 of the 17 factors compared between the two stocks.

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.

About Global Industrial

Global Industrial Company operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in North America. It offers storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, foodservice and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The company offers industrial and MRO products under the Global, GlobalIndustrial.com, Nexel, Paramount, Interion, and Absocold trademarks. It serves businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, signature campaigns, and catalogs. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.