Wartsila (OTCMKTS:WRTBY) and Enersys (NYSE:ENS) Critical Survey

Wartsila (OTCMKTS:WRTBY) and Enersys (NYSE:ENS) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Institutional and Insider Ownership

94.9% of Enersys shares are held by institutional investors. 0.9% of Enersys shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Wartsila and Enersys, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wartsila	0	1	0	1	3.00
Enersys	0	0	3	0	3.00

Enersys has a consensus price target of $117.50, suggesting a potential upside of 30.24%. Given Enersys’ higher probable upside, analysts plainly believe Enersys is more favorable than Wartsila.

Profitability

This table compares Wartsila and Enersys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wartsila	8.09%	22.57%	7.19%
Enersys	10.05%	22.12%	10.59%

Earnings & Valuation

This table compares Wartsila and Enersys”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wartsila	$6.98 billion	1.96	$544.30 million	$0.19	24.42
Enersys	$3.62 billion	0.98	$363.73 million	$9.01	10.01

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

Dividends

Wartsila pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Enersys pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. Wartsila pays out 10.5% of its earnings in the form of a dividend. Enersys pays out 10.7% 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. Enersys has raised its dividend for 2 consecutive years. Enersys is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Wartsila has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Enersys has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

Enersys beats Wartsila on 9 of the 17 factors compared between the two stocks.

About Wartsila

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers engine power plant products, such as gas, multi-fuel, and diesel engines; GEMS Digital Energy Platform, a smart software platform that monitors, controls, and optimizes energy assets on site and portfolio levels; GridSolv Quantum, a fully integrated energy storage solution, which enables ease of deployment and sustainable energy optimization; GEMS Power Plant Controllers; GEMS Fleet Director, which provides centralized real-time visibility into a global fleet of power plants; and GEMS Grid Controller that conducts intelligent grid control and optimized power management for microgrids of various sizes. The company also provides GEMS smart energy management software platform to remotely monitor, operate, identify, and diagnose assets; lifecycle solutions for power plants; power and propulsion products, such as electric shipping and hybrid ships, engine and generating sets, propulsors and gears, and shaft line solutions; liquid and gas handling products, including ballast water management, freshwater generation, waste and wastewater treatment, gas solutions, and exhaust treatment equipment; port and fleet optimization; simulation and training solutions; and automation, navigation, and control systems. The company was founded in 1834 and is headquartered in Helsinki, Finland.

About Enersys

EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.