Critical Analysis: Kone Oyj (OTCMKTS:KNYJY) and Atmus Filtration Technologies (NYSE:ATMU)

Atmus Filtration Technologies (NYSE:ATMU) and Kone Oyj (OTCMKTS:KNYJY) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Atmus Filtration Technologies and Kone Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atmus Filtration Technologies	0	2	4	0	2.67
Kone Oyj	3	3	1	1	2.00

Atmus Filtration Technologies currently has a consensus target price of $57.67, indicating a potential upside of 20.34%. Given Atmus Filtration Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Atmus Filtration Technologies is more favorable than Kone Oyj.

Risk & Volatility

Atmus Filtration Technologies has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Kone Oyj has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Atmus Filtration Technologies and Kone Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atmus Filtration Technologies	11.32%	59.85%	14.66%
Kone Oyj	8.61%	41.07%	11.11%

Valuation and Earnings

This table compares Atmus Filtration Technologies and Kone Oyj”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmus Filtration Technologies	$1.76 billion	2.22	$207.40 million	$2.61	18.36
Kone Oyj	$12.72 billion	2.33	$1.11 billion	$1.11	29.49

Kone Oyj has higher revenue and earnings than Atmus Filtration Technologies. Atmus Filtration Technologies is trading at a lower price-to-earnings ratio than Kone Oyj, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

32.7% of Atmus Filtration Technologies shares are owned by institutional investors. 0.4% of Atmus Filtration Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Atmus Filtration Technologies pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Kone Oyj pays an annual dividend of $0.45 per share and has a dividend yield of 1.4%. Atmus Filtration Technologies pays out 9.2% of its earnings in the form of a dividend. Kone Oyj pays out 40.5% 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.

Summary

Atmus Filtration Technologies beats Kone Oyj on 11 of the 17 factors compared between the two stocks.

About Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.