Critical Review: ATLAS COPCO AB/S (OTCMKTS:ATLKY) & Bayerische Motoren Werke (OTCMKTS:BAMXF)

ATLAS COPCO AB/S (OTCMKTS:ATLKY) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Dividends

ATLAS COPCO AB/S pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. Bayerische Motoren Werke does not pay a dividend. ATLAS COPCO AB/S pays out 17.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.1% of ATLAS COPCO AB/S shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ATLAS COPCO AB/S and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ATLAS COPCO AB/S 16.98% 38.87% 17.00%
Bayerische Motoren Werke 4.87% 8.07% 2.21%

Analyst Ratings

This is a summary of recent ratings and price targets for ATLAS COPCO AB/S and Bayerische Motoren Werke, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATLAS COPCO AB/S 0 3 1 0 2.25
Bayerische Motoren Werke 3 6 4 0 2.08

Bayerische Motoren Werke has a consensus price target of $75.11, indicating a potential upside of 12.59%. Given Bayerische Motoren Werke’s higher possible upside, analysts plainly believe Bayerische Motoren Werke is more favorable than ATLAS COPCO AB/S.

Risk & Volatility

ATLAS COPCO AB/S has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares ATLAS COPCO AB/S and Bayerische Motoren Werke’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ATLAS COPCO AB/S $10.98 billion 2.14 $12.22 billion $1.55 18.06
Bayerische Motoren Werke $115.13 billion 0.35 $8.41 billion $12.86 5.19

ATLAS COPCO AB/S has higher earnings, but lower revenue than Bayerische Motoren Werke. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than ATLAS COPCO AB/S, indicating that it is currently the more affordable of the two stocks.

Summary

ATLAS COPCO AB/S beats Bayerische Motoren Werke on 10 of the 15 factors compared between the two stocks.

ATLAS COPCO AB/S Company Profile

Atlas Copco AB, through its subsidiaries, provides productivity solutions worldwide. It offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, and medical air solutions for use in manufacturing, oil and gas, and process industries. The company also provides pneumatic and hydraulic assembly tools, electric assembly tools, control systems and associated software packages, dispensing equipment for adhesives and sealants, and self-pierce riveting tools and rivets for the motor vehicle industry; basic fastening tools, drills, and grinders; and impact wrenches, percussive tools, drills, sanders, and grinders for vehicle service professionals. In addition, it offers portable compressors, boosters, generators, lighting towers, pumps, and construction and demolition tools for civil engineering, construction, and demolition applications, as well as offers specialty rental services. The company was founded in 1873 and is headquartered in Nacka, Sweden.

Bayerische Motoren Werke Company Profile

Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, develops, manufactures, and sells automobiles and motorcycles, and spare parts and accessories worldwide. The company operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment develops, manufactures, assembles, and sells automobiles and off-road vehicles under the BMW, MINI, and Rolls-Royce brands; and spare parts and accessories, as well as offers mobility services. This segment sells its products through independent and authorized dealerships. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles under the BMW Motorrad brand; and spare parts and accessories. The Financial Services segment is involved in automobile leasing, fleet and multi-brand business, retail and dealership financing, customer deposit business, and insurance activities. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is based in Munich, Germany.

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