Siemens (OTCMKTS:SIEGY) vs. Ashtead Group (OTCMKTS:ASHTY) Critical Review

Siemens (OTCMKTS:SIEGY) and Ashtead Group (OTCMKTS:ASHTY) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Volatility and Risk

Siemens has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Ashtead Group has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Dividends

Siemens pays an annual dividend of $2.00 per share and has a dividend yield of 1.4%. Ashtead Group pays an annual dividend of $5.63 per share and has a dividend yield of 2.0%. Siemens pays out 29.6% of its earnings in the form of a dividend. Ashtead Group pays out 41.2% 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 Siemens and Ashtead Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens	$82.35 billion	2.75	$9.00 billion	$6.75	20.97
Ashtead Group	$10.79 billion	2.78	$1.51 billion	$13.65	20.84

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

Institutional & Insider Ownership

0.8% of Siemens shares are held by institutional investors. Comparatively, 0.8% of Ashtead Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Siemens and Ashtead Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens	1	9	0	0	1.90
Ashtead Group	1	3	2	0	2.17

Profitability

This table compares Siemens and Ashtead Group’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%
Ashtead Group	13.68%	20.89%	7.26%

Summary

Ashtead Group beats Siemens on 10 of the 14 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 Ashtead Group

Ashtead Group plc, together with its subsidiaries, engages in the construction, industrial, and general equipment rental business in the United States, the United Kingdom, and Canada. It provides pumps, power generation, heating, cooling, scaffolding, traffic management, temporary flooring, trench shoring, and lifting services. The company offers its products and services for facilities maintenance and municipalities, such as office complexes, apartment complexes, government, hospitals, data centers, parks and recreation departments, schools and universities, shopping centers, pavement/kerb repairs, and golf course maintenance; construction of airports, highways and bridges, office buildings, data centers, schools and universities, shopping centers, residential, remodeling, manufacturing plants, and green energy plants; emergency response for fire, hurricanes, flooding, tornadoes, winter, storms, residential and health emergencies, alternative care facilities, points of distribution, and mobile testing facilities; and entertainment and special events, including national events, concerts, sporting events, film and telvision production, theme parks, festivals farmers' markets, local 5k runs, and cycle races. It operates 1,094 stores in the United States, 119 stores in Canada, and 185 stores in the United Kingdom under the Sunbelt Rentals brand. The company was founded in 1947 and is headquartered in London, the United Kingdom.