Wärtsilä (OTCMKTS: WRTBY) is one of 20 public companies in the “Special industry machinery, not elsewhere classified” industry, but how does it contrast to its competitors? We will compare Wärtsilä to similar companies based on the strength of its profitability, earnings, dividends, risk, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Wärtsilä and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wärtsilä $5.56 billion $434.03 million 30.93
Wärtsilä Competitors $2.33 billion $291.56 million -18.84

Wärtsilä has higher revenue and earnings than its competitors. Wärtsilä is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Wärtsilä pays an annual dividend of $0.15 per share and has a dividend yield of 3.2%. Wärtsilä pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Special industry machinery, not elsewhere classified” companies pay a dividend yield of 0.9% and pay out 22.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Wärtsilä and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wärtsilä 0 0 0 0 N/A
Wärtsilä Competitors 101 411 831 27 2.57

As a group, “Special industry machinery, not elsewhere classified” companies have a potential upside of 26.72%. Given Wärtsilä’s competitors higher possible upside, analysts clearly believe Wärtsilä has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

60.0% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by institutional investors. 11.6% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Wärtsilä and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wärtsilä 7.88% 17.64% 7.28%
Wärtsilä Competitors -6.72% 2.71% 0.79%

Risk & Volatility

Wärtsilä has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Wärtsilä’s competitors have a beta of 1.38, meaning that their average share price is 38% more volatile than the S&P 500.

Summary

Wärtsilä beats its competitors on 7 of the 12 factors compared.

Wärtsilä Company Profile

Wärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide. The company offers gas, multi-fuel, and liquid fuel power plants; and seals, bearings, and related equipment for the hydropower and tidal, and a range of industrial sectors. It also provides ballast water management systems; seismic, rig tensioning, CNG, and high pressure air and gas compressors; communication, and safety and security systems; and automation, dredge control and monitoring, integrated bridge control, and measurement and control technologies. It also provides electric propulsion and drives; power generation and distribution systems; navigation, automation, and communication systems; dynamic positioning, safety, and security solutions; and entertainment systems. In addition, the company offers dual fuel, diesel, and low-speed engines, as well as generating sets and auxiliary systems; architectural lighting, audio, broadcast, digital signage, dynamic lighting, and LED display systems; exhaust gas cleaning systems; single stage desalination systems and multi stage flash evaporators; and gas cargo handling, gas recovery, LNG, fuel gas handling, and tank control systems. Further, it provides inert gas systems; hybrid and integrated solutions; gears, propellers, propulsion control systems, rudders, thrusters, and waterjets; shaft generator and shore connection systems; centrifugal, deepwell, firefight, seawater lift, and gas fuel pumps, as well as pump room systems and valves; sonars and naval acoustics; and wet and dry products, as well as designs ferry, fishing, merchant, offshore, tug, and other vessels. Additionally, the company offers electrical and automation, 2 and 4-stroke engine, environmental, seal and bearing, hydro and tidal, industrial, propulsion, and other services. It serves merchant, offshore, cruise and ferry, special vessel, and navy segments. The company was founded in 1834 and is headquartered in Helsinki, Finland.

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