Critical Analysis: Icahn Enterprises (NASDAQ:IEP) versus Barloworld (OTCMKTS:BRRAY)

Icahn Enterprises (NASDAQ:IEP) and Barloworld (OTCMKTS:BRRAY) are both mid-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Volatility and Risk

Icahn Enterprises has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Barloworld has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Icahn Enterprises and Barloworld, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Icahn Enterprises	1	1	0	0	1.50
Barloworld	0	0	0	0	0.00

Institutional & Insider Ownership

87.1% of Icahn Enterprises shares are owned by institutional investors. 90.1% of Icahn Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Icahn Enterprises pays an annual dividend of $2.00 per share and has a dividend yield of 26.1%. Barloworld pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Icahn Enterprises pays out -333.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Icahn Enterprises and Barloworld”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Icahn Enterprises	$9.66 billion	0.51	-$299.00 million	($0.60)	-12.78
Barloworld	$2.09 billion	1.41	$79.96 million	N/A	N/A

Barloworld has lower revenue, but higher earnings than Icahn Enterprises.

Profitability

This table compares Icahn Enterprises and Barloworld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Icahn Enterprises	-2.98%	-8.22%	-1.94%
Barloworld	N/A	N/A	N/A

Summary

Icahn Enterprises beats Barloworld on 7 of the 12 factors compared between the two stocks.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.

About Barloworld

Barloworld Limited operates as an industrial processing, distribution, and services company in Southern Africa, Australia, Russia, and Mongolia. The company operates through Equipment Southern Africa, Automotive, Ingrain, Equipment Eurasia, and Other segments. The company offers industrial equipment and services comprising of earthmoving equipment, industrial services, and power systems that enable various mining, construction, and power solutions. It also manufactures various products, which includes food, beverages, paper, pharmaceuticals, building material and adhesives, and others. In addition, the company offers starch, glucose, and other products; and salvage management and disposal services. It serves mining, construction, energy, and transportation sectors. The company was founded in 1902 and is based in Sandton, South Africa.