Analyzing DMC Global (NASDAQ:BOOM) & Horiba (OTCMKTS:HRIBF)

Horiba (OTCMKTS:HRIBF) and DMC Global (NASDAQ:BOOM) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horiba	0	0	0	0	0.00
DMC Global	1	2	0	0	1.67

DMC Global has a consensus target price of $8.50, indicating a potential upside of 15.18%. Given DMC Global’s stronger consensus rating and higher possible upside, analysts clearly believe DMC Global is more favorable than Horiba.

Insider & Institutional 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Horiba has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, DMC Global has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Horiba	11.36%	12.32%	8.05%
DMC Global	-1.69%	1.89%	0.72%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horiba	$2.10 billion	2.05	$221.71 million	$5.98	17.17
DMC Global	$642.85 million	0.24	-$94.45 million	($0.47)	-15.70

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

Summary

Horiba beats DMC Global on 8 of the 13 factors compared between the two stocks.

About Horiba

HORIBA, Ltd. manufactures and sells instruments and systems worldwide. The company operates in five segments: Automotive, Environment/Process, Medical, Semiconductor, and Scientific. The Automotive segment offers engine emission measurement devices; in-use vehicle emission measurement devices; on-board emission measurement devices; in-vehicle exhaust gas measuring devices; driveline test systems; engine test systems; brake test systems; fuel cell test devices; battery test devices; and vehicle development engineering and test engineering services, as well as leases and manages research and development facilities. The Environment/Process segment provides flue gas analyzers, water quality measuring devices, air pollution monitoring analyzers, environmental radiation measuring instruments, and process measurement equipment. The Medical segment offers hematology and CRP, immunology, clinical chemistry, and blood glucose analyzers, blood cell counters, biochemical testing devices, blood glucose testing devices, as well as coagulation/hemostasis analyzers. The Semiconductor segment provides mass flow controllers, chemical concentration monitors, semiconductor contaminant inspection equipment, and residual gas analyzer. The Scientific segment offers Raman spectrometers, pH meters, water quality measuring devices, particle size distribution measuring devices, X -ray fluorescence analyzers, elemental analyzers, fluorescence spectroscopy/lifetime measurement devices, spectrometer/detectors, and gratings. It also engages in the fund management, software development, and automation software for engine. The company’s products are used in arts, entertainment, and recreation; education, research and development, and government institution; food and beverage; energy and environment; health care; industrials; information technology; water; materials; mobility and transport; and waste management applications. HORIBA, Ltd. was founded in 1945 and is headquartered in Kyoto, Japan.

About DMC Global

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.