Sandvik (OTCMKTS:SDVKY) & Greenbrier Companies (NYSE:GBX) Head to Head Contrast

Sandvik (OTCMKTS:SDVKY) and Greenbrier Companies (NYSE:GBX) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Valuation and Earnings

This table compares Sandvik and Greenbrier Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sandvik	$12.34 billion	3.91	$1.50 billion	$1.45	26.50
Greenbrier Companies	$3.24 billion	0.41	$204.10 million	$3.37	12.79

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

Profitability

This table compares Sandvik and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandvik	13.05%	18.45%	9.99%
Greenbrier Companies	4.07%	6.49%	2.55%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sandvik and Greenbrier Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandvik	1	8	3	1	2.31
Greenbrier Companies	1	3	0	0	1.75

Greenbrier Companies has a consensus price target of $45.00, indicating a potential upside of 4.37%. Given Greenbrier Companies’ higher probable upside, analysts clearly believe Greenbrier Companies is more favorable than Sandvik.

Insider and Institutional Ownership

0.7% of Sandvik shares are held by institutional investors. Comparatively, 95.6% of Greenbrier Companies shares are held by institutional investors. 1.7% of Greenbrier Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Sandvik pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Greenbrier Companies pays an annual dividend of $1.36 per share and has a dividend yield of 3.2%. Sandvik pays out 29.0% of its earnings in the form of a dividend. Greenbrier Companies pays out 40.4% 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. Greenbrier Companies has increased its dividend for 3 consecutive years. Greenbrier Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Sandvik has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Summary

Sandvik beats Greenbrier Companies on 12 of the 18 factors compared between the two stocks.

About Sandvik

Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It also provides metal-cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and components made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. The company serves aerospace, automotive, energy, general engineering, infrastructure, and mining industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars. The Maintenance Services segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts. The Leasing & Management Services segment offers operating leases and per diem leases for a fleet of approximately 13,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar re-marketing. This segment provides management services for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. It serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.