Financial Review: Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BAMXF) versus Sandvik AB (publ) (OTCMKTS:SDVKY)

Bayerische Motoren Werke Aktiengesellschaft (OTCMKTS:BAMXF) and Sandvik AB (publ) (OTCMKTS:SDVKY) are both large-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Earnings and Valuation

This table compares Bayerische Motoren Werke Aktiengesellschaft and Sandvik AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bayerische Motoren Werke Aktiengesellschaft	$168.28 billion	0.27	$12.22 billion	$14.03	5.60
Sandvik AB (publ)	$11.62 billion	2.27	$1.16 billion	$0.93	22.60

Bayerische Motoren Werke Aktiengesellschaft has higher revenue and earnings than Sandvik AB (publ). Bayerische Motoren Werke Aktiengesellschaft is trading at a lower price-to-earnings ratio than Sandvik AB (publ), indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.7% of Sandvik AB (publ) shares are held 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.

Profitability

This table compares Bayerische Motoren Werke Aktiengesellschaft and Sandvik AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bayerische Motoren Werke Aktiengesellschaft	5.48%	8.67%	3.17%
Sandvik AB (publ)	9.92%	16.32%	8.16%

Analyst Recommendations

This is a breakdown of recent ratings for Bayerische Motoren Werke Aktiengesellschaft and Sandvik AB (publ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bayerische Motoren Werke Aktiengesellschaft	0	0	0	1	4.00
Sandvik AB (publ)	1	1	1	2	2.80

Risk & Volatility

Bayerische Motoren Werke Aktiengesellschaft has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Sandvik AB (publ) has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Summary

Sandvik AB (publ) beats Bayerische Motoren Werke Aktiengesellschaft on 9 of the 13 factors compared between the two stocks.

About Bayerische Motoren Werke Aktiengesellschaft

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.

About Sandvik AB (publ)

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.