Atlas Copco (OTCMKTS:ATLKY) and Burnham (OTCMKTS:BURCA) Financial Contrast

Atlas Copco (OTCMKTS:ATLKY) and Burnham (OTCMKTS:BURCA) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

0.0% of Atlas Copco shares are held by institutional investors. Comparatively, 1.5% of Burnham shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Atlas Copco and Burnham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Copco	15.70%	24.94%	13.21%
Burnham	-8.03%	11.59%	7.21%

Dividends

Atlas Copco pays an annual dividend of $0.21 per share and has a dividend yield of 1.0%. Burnham pays an annual dividend of $0.92 per share and has a dividend yield of 3.7%. Atlas Copco pays out 38.2% of its earnings in the form of a dividend. Burnham pays out -20.1% 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. Burnham is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Atlas Copco and Burnham, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Copco	1	3	4	0	2.38
Burnham	0	0	0	0	0.00

Volatility and Risk

Atlas Copco has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Burnham has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Earnings & Valuation

This table compares Atlas Copco and Burnham”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Copco	$17.21 billion	5.89	$2.70 billion	$0.55	37.85
Burnham	$258.11 million	0.33	-$21.45 million	($4.58)	-5.50

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

Summary

Atlas Copco beats Burnham on 11 of the 14 factors compared between the two stocks.

About Atlas Copco

Atlas Copco AB provides compressed air and gas, vacuum, energy, dewatering and industrial pump, industrial power tool, and assembly and machine vision solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. It operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. The company offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, expanders and pumps, and medical air solutions. It also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; turbomolecular and cryogenic pumps; abatement and integrated systems; industrial assembly tools and solutions; self-pierce riveting solutions; adhesive dispensing and flow drill fastening equipment; material removal tools, and drills and other pneumatic products; machine vision solutions; construction and demolition tools; mobile compressors, generators, and energy storage systems; and industrial flow, portable power, portable flow, and portable air products, as well as specialty rental services. The company serves the semiconductor and flat panel, industrial manufacturing, civil engineering, demolition, exploration drilling, automotive, off-highway vehicles, electronics, aerospace, energy, food, pharmaceutical, textile, and other industries. Atlas Copco AB was founded in 1873 and is headquartered in Nacka, Sweden.

About Burnham

Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.