Yara International ASA (OTCMKTS:YARIY) & SMC (OTCMKTS:SMCAY) Head to Head Review

SMC (OTCMKTS:SMCAYGet Rating) and Yara International ASA (OTCMKTS:YARIYGet Rating) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current ratings for SMC and Yara International ASA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SMC 0 0 0 0 N/A
Yara International ASA 2 4 5 0 2.27

Insider and Institutional Ownership

0.1% of Yara International ASA shares are held by institutional investors. 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

SMC pays an annual dividend of $0.19 per share and has a dividend yield of 0.8%. Yara International ASA pays an annual dividend of $0.82 per share and has a dividend yield of 3.7%. SMC pays out 16.4% of its earnings in the form of a dividend. Yara International ASA pays out 30.4% 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.

Profitability

This table compares SMC and Yara International ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SMC 25.15% 11.92% 10.70%
Yara International ASA 7.13% 24.51% 10.74%

Volatility & Risk

SMC has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Yara International ASA has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares SMC and Yara International ASA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SMC $5.21 billion 6.04 $1.14 billion $1.16 20.13
Yara International ASA $16.61 billion 0.68 $449.00 million $2.70 8.25

SMC has higher earnings, but lower revenue than Yara International ASA. Yara International ASA is trading at a lower price-to-earnings ratio than SMC, indicating that it is currently the more affordable of the two stocks.

Summary

Yara International ASA beats SMC on 7 of the 13 factors compared between the two stocks.

About SMC (Get Rating)

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers directional control valves, air cylinders, rotary actuators/air grippers, electric actuators/cylinders, vacuum equipment, air preparation equipment, modular F.R.L./pressure control equipment, lubrication equipment, fittings and tubings, flow control equipment, speed controllers, silencers/exhaust cleaners/blow guns/pressure gauges, switches/sensors/controllers, and static neutralization equipment. It also provides process valves, chemical liquid valves/fittings and needle valves/tubings, process pumps, temperature control equipment, process gas equipment, high vacuum equipment, industrial filters/sintered metal elements, pneumatic instrumentation equipment, and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.

About Yara International ASA (Get Rating)

Yara International ASA provides environmental and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers nitrogen-based fertilizers, including urea, urea ammonium nitrate, calcium ammonium nitrate, ammonium nitrate, and ammonium sulfate; compound fertilizers that contain plant nutrients, such as nitrogen, phosphorus, and potassium; and blended products, as well as foliar and fertigation solutions through micronutrients. It also offers farmer centric solutions; solutions for farming, such as crop monitoring, variable rate fertilization, N-Tester BT, and Driving Mode, a mobile app; N-Sensor, a tractor-mounted tool that allows growers to measure a crop's nitrogen requirement; CheckIT, a smartphone app using a library of crop photographs to give a simple and fast identification of nutrient deficiencies; TankmixIT, an app used to check for the physical compatibility when tank mixing; and Tankmix.com, an online service providing advice on the physical mixing characteristics of Yara's foliar products with agrochemicals. The company sells its products under YaraBela, YaraLiva, YaraMila, YaraRega, YaraTera, YaraVera, and YaraVita brands name. Yara International ASA was founded in 1905 and is headquartered in Oslo, Norway.

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