Kone Oyj (OTCMKTS:KNYJY) vs. Vestas Wind Systems AS (OTCMKTS:VWDRY) Financial Survey

Kone Oyj (OTCMKTS:KNYJY) and Vestas Wind Systems AS (OTCMKTS:VWDRY) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Risk & Volatility

Kone Oyj has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Vestas Wind Systems AS has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Kone Oyj and Vestas Wind Systems AS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kone Oyj	8.48%	39.83%	10.94%
Vestas Wind Systems AS	4.08%	23.25%	3.06%

Dividends

Kone Oyj pays an annual dividend of $0.41 per share and has a dividend yield of 1.2%. Vestas Wind Systems AS pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Kone Oyj pays out 40.2% of its earnings in the form of a dividend. Vestas Wind Systems AS pays out 3.7% 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.

Valuation and Earnings

This table compares Kone Oyj and Vestas Wind Systems AS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kone Oyj	$12.01 billion	2.56	$1.03 billion	$1.02	33.26
Vestas Wind Systems AS	$18.72 billion	1.05	$539.97 million	$0.27	24.00

Kone Oyj has higher earnings, but lower revenue than Vestas Wind Systems AS. Vestas Wind Systems AS is trading at a lower price-to-earnings ratio than Kone Oyj, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Kone Oyj and Vestas Wind Systems AS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kone Oyj	1	1	0	0	1.50
Vestas Wind Systems AS	1	2	1	1	2.40

Summary

Kone Oyj beats Vestas Wind Systems AS on 8 of the 14 factors compared between the two stocks.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.

About Vestas Wind Systems AS

Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.