Financial Analysis: Andritz (OTCMKTS:ADRZY) vs. DMC Global (NASDAQ:BOOM)

Andritz (OTCMKTS:ADRZYGet Free Report) and DMC Global (NASDAQ:BOOMGet Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Andritz and DMC Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Andritz 1 0 1 0 2.00
DMC Global 0 2 0 0 2.00

DMC Global has a consensus target price of $8.50, indicating a potential upside of 3.79%. Given DMC Global’s higher probable upside, analysts plainly believe DMC Global is more favorable than Andritz.

Earnings and Valuation

This table compares Andritz and DMC Global”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Andritz $9.00 billion 0.84 $537.26 million $1.02 14.31
DMC Global $642.85 million 0.26 -$94.45 million ($8.64) -0.95

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

Institutional and Insider Ownership

77.6% of DMC Global shares are owned by institutional investors. 3.4% of DMC Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Andritz has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, DMC Global has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Andritz 5.81% 21.31% 5.79%
DMC Global -17.54% -1.27% -0.48%

Summary

Andritz beats DMC Global on 9 of the 13 factors compared between the two stocks.

About Andritz

(Get Free Report)

Andritz AG provides plants, equipment, and services for pulp and paper industry, metalworking and steel industries, hydropower stations, and solid/liquid separation in the municipal and industrial sectors in Europe, North America, South America, China, Asia, and internationally. It operates through four segments: Pulp & Paper, Metals, Hydro, and Separation. The Pulp & Paper segment supplies technology, automation, and service solutions to produce pulp, paper, board, and tissue; boilers for power generation; flue gas cleaning systems; nonwovens technologies; panelboard production systems; and recycling, shredding, and energy solutions for various waste materials. The Metals segment provides technologies, plants, and digital solutions, including automation and software solutions, and process know-how and services; and solutions for the production and processing of flat products for welding systems and industrial furnaces, as well as services for the metals processing industry. The Hydro segment supplies electromechanical equipment and services for hydropower plants; offers plant diagnosis, refurbishment, modernization, and upgradation of existing hydropower plants; and pumps for irrigation, water supply, and flood control, as well as turbo generators. The Separation segment offers mechanical and thermal technologies, as well as services and related automation solutions for solid/liquid separation to serve chemical, environmental, food, mining, and minerals industries; and technologies and services to produce animal feed and biomass pellets. The company was founded in 1852 and is headquartered in Graz, Austria.

About DMC Global

(Get Free Report)

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.

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