Head-To-Head Survey: Kawasaki Heavy Industries (OTCMKTS:KWHIY) and Ingersoll Rand (NYSE:IR)

Kawasaki Heavy Industries (OTCMKTS:KWHIY) and Ingersoll Rand (NYSE:IR) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares Kawasaki Heavy Industries and Ingersoll Rand”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	0.80	$580.81 million	$1.21	22.06
Ingersoll Rand	$7.24 billion	4.44	$838.60 million	$1.28	63.17

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

Insider & Institutional Ownership

95.3% of Ingersoll Rand shares are held by institutional investors. 0.6% of Ingersoll Rand shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kawasaki Heavy Industries and Ingersoll Rand, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kawasaki Heavy Industries	0	1	0	0	2.00
Ingersoll Rand	0	6	6	0	2.50

Ingersoll Rand has a consensus price target of $97.75, indicating a potential upside of 20.89%. Given Ingersoll Rand’s stronger consensus rating and higher possible upside, analysts clearly believe Ingersoll Rand is more favorable than Kawasaki Heavy Industries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kawasaki Heavy Industries	3.49%	10.50%	2.55%
Ingersoll Rand	7.10%	12.12%	6.89%

Risk & Volatility

Kawasaki Heavy Industries has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Ingersoll Rand has a beta of 1.4, meaning that its stock price is 40% more 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 1.1%. Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Kawasaki Heavy Industries pays out 24.8% of its earnings in the form of a dividend. Ingersoll Rand pays out 6.3% 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.

Summary

Ingersoll Rand beats Kawasaki Heavy Industries on 14 of the 16 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 Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.