thyssenkrupp (OTCMKTS:TYEKF) vs. Zalando (OTCMKTS:ZLNDY) Critical Analysis

thyssenkrupp (OTCMKTS:TYEKF) and Zalando (OTCMKTS:ZLNDY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Profitability

This table compares thyssenkrupp and Zalando’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
thyssenkrupp 36.47% -70.37% -13.39%
Zalando 2.45% 10.16% 3.59%

Analyst Ratings

This is a summary of current recommendations and price targets for thyssenkrupp and Zalando, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
thyssenkrupp 0 1 1 0 2.50
Zalando 2 5 8 1 2.50

thyssenkrupp presently has a consensus price target of $35.00, indicating a potential upside of 182.26%. Given thyssenkrupp’s higher possible upside, analysts plainly believe thyssenkrupp is more favorable than Zalando.

Risk & Volatility

thyssenkrupp has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of Zalando 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.

Earnings and Valuation

This table compares thyssenkrupp and Zalando’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
thyssenkrupp $32.37 billion 0.24 $10.74 billion N/A N/A
Zalando $7.26 billion 4.09 $111.66 million N/A N/A

thyssenkrupp has higher revenue and earnings than Zalando.

Summary

Zalando beats thyssenkrupp on 7 of the 12 factors compared between the two stocks.

About thyssenkrupp

thyssenkrupp AG operates in the areas of automotive technology, industrial components, plant technology, marine systems, steel, and materials services in Germany, the United States, China, and internationally. The company's Automotive Technology segment develops and manufactures components and systems and automated production systems for the automotive industry. Its Industrial Components segment manufactures and sells forged components and system solutions for the resource, construction, and mobility sectors; and slewing rings, antifriction bearings, and seamless rolled rings for the wind energy and construction machinery sectors. The company's Plant Technology segment builds plants for the chemical, cement, and mining industries. Its Marine Systems segment provides systems in the submarine and surface ship building, as well as in the field of maritime electronics and security technology. The company's Materials Services segment distributes materials and offers technical services for the production and manufacturing sectors. Its Steel Europe segment provides flat carbon steel products, intelligent material solutions, and finished parts. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

About Zalando

Zalando SE operates as an online fashion and lifestyle retailer. It offers a range of products, including shoes, apparel, accessories, and beauty products for women, men, and children, as well as free delivery and returns services. The company also sells its products through its Zalando Lounge; and brick-and-mortar stores in Berlin, Frankfurt, Cologne, Leipzig, Hamburg, Hanover, Münster, Stuttgart, Mannheim, and Ulm. It serves in Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxemburg, the Netherlands, Norway, Poland, Spain, Sweden, Switzerland, and the United Kingdom. Zalando SE was founded in 2008 and is headquartered in Berlin, Germany.

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