Daikin Industries,Ltd. (OTCMKTS:DKILY) vs. Kingspan Group (OTCMKTS:KGSPF) Critical Analysis

Daikin Industries,Ltd. (OTCMKTS:DKILY) and Kingspan Group (OTCMKTS:KGSPF) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Daikin Industries,Ltd. and Kingspan Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daikin Industries,Ltd.	0	1	0	0	2.00
Kingspan Group	0	0	0	0	N/A

Profitability

This table compares Daikin Industries,Ltd. and Kingspan Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daikin Industries,Ltd.	5.35%	8.12%	4.41%
Kingspan Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Daikin Industries,Ltd. and Kingspan Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daikin Industries,Ltd.	$30.45 billion	1.14	$1.80 billion	$0.61	19.44
Kingspan Group	N/A	N/A	N/A	$0.57	150.09

Daikin Industries,Ltd. has higher revenue and earnings than Kingspan Group. Daikin Industries,Ltd. is trading at a lower price-to-earnings ratio than Kingspan Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Daikin Industries,Ltd. pays an annual dividend of $0.10 per share and has a dividend yield of 0.8%. Kingspan Group pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Daikin Industries,Ltd. pays out 16.4% of its earnings in the form of a dividend. Kingspan Group pays out 15.0% 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.

Institutional and Insider Ownership

46.6% of Kingspan Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Daikin Industries,Ltd. beats Kingspan Group on 6 of the 9 factors compared between the two stocks.

About Daikin Industries,Ltd.

Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.

About Kingspan Group

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in Western and Southern Europe, Central and Northern Europe, the Americas, and internationally. It operates through five segments: Insulated Panels, Insulation, Roofing + Waterproofing, Light, Air + Water, and Data + Flooring. The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades. The Insulation segment produces rigid insulation boards, technical insulation, and engineered timber systems. The Roofing + Waterproofing segment produces roofing and waterproofing solutions for renovation and new construction of buildings. The Light, Air + Water segment offers daylighting, smoke management, ventilation systems, and service activities, as well as provides energy and water solutions, and related services. The Data + Flooring segment manufactures data center storage solutions, as well as raised access floors. Kingspan Group plc was founded in 1965 and is based in Kingscourt, Ireland.