Reviewing NIBE Industrier AB (publ) (OTCMKTS:NDRBF) & A. O. Smith (NYSE:AOS)
by Michael Walen · The Markets DailyA. O. Smith (NYSE:AOS – Get Free Report) and NIBE Industrier AB (publ) (OTCMKTS:NDRBF – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Valuation & Earnings
This table compares A. O. Smith and NIBE Industrier AB (publ)”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| A. O. Smith | $3.83 billion | 2.28 | $546.20 million | $3.60 | 17.59 |
| NIBE Industrier AB (publ) | N/A | N/A | N/A | $8.57 | 0.45 |
A. O. Smith has higher revenue and earnings than NIBE Industrier AB (publ). NIBE Industrier AB (publ) is trading at a lower price-to-earnings ratio than A. O. Smith, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
76.1% of A. O. Smith shares are owned by institutional investors. Comparatively, 26.1% of NIBE Industrier AB (publ) shares are owned by institutional investors. 0.5% of A. O. Smith shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares A. O. Smith and NIBE Industrier AB (publ)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A. O. Smith | 13.15% | 27.88% | 15.21% |
| NIBE Industrier AB (publ) | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for A. O. Smith and NIBE Industrier AB (publ), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A. O. Smith | 3 | 4 | 2 | 0 | 1.89 |
| NIBE Industrier AB (publ) | 2 | 0 | 1 | 0 | 1.67 |
A. O. Smith presently has a consensus price target of $67.75, suggesting a potential upside of 6.96%. Given A. O. Smith’s stronger consensus rating and higher possible upside, analysts plainly believe A. O. Smith is more favorable than NIBE Industrier AB (publ).
Summary
A. O. Smith beats NIBE Industrier AB (publ) on 10 of the 11 factors compared between the two stocks.
About A. O. Smith
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
About NIBE Industrier AB (publ)
NIBE Industrier AB (publ), together with its subsidiaries, develops, manufactures, markets, and sells various energy-efficient solutions for indoor climate comfort, and components and solutions for intelligent heating and control in Nordic countries, rest of Europe, North America, and internationally. The company operates through three business areas: NIBE Climate Solutions, NIBE Element, and NIBE Stoves. The NIBE Climate Solutions business area offers indoor climate comfort products, such as heat pumps, ventilation products and air conditioning, climate control systems, water heaters and accumulator tanks, district heating products, PV panels, domestic boilers, commercial washing machines, and tumble dryers for homes, apartment blocks, hotels, hospitals, and commercial properties. The NIBE Element business area provides various components and solutions for heating and control, which include tubular, aluminum, foil, thick film, PTC, high-power, and ceramic elements, as well as open spirals and tapes, heating cables and jackets, vacuum brazing, heat pump technology, resistors, heat exchangers, temperature sensors, flexible hoses, and control equipment to domestic and household appliances; commercial products and professional kitchens; energy; transport; advanced technology; medicine; and aviation sectors, as well as industrial projects sectors. The NIBE Stoves business area offers free-standing, wood-burning, gas, and electric stoves; heat-retaining products; and chimney systems, as well as accessories. NIBE Industrier AB (publ) was founded in 1949 and is headquartered in Markaryd, Sweden.