Head to Head Analysis: Sandvik (OTCMKTS:SDVKY) & Nordson (NASDAQ:NDSN)

Nordson (NASDAQ:NDSN – Get Free Report) and Sandvik (OTCMKTS:SDVKY – Get Free Report) are both large-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Dividends

Nordson pays an annual dividend of $3.76 per share and has a dividend yield of 1.2%. Sandvik pays an annual dividend of $0.42 per share and has a dividend yield of 1.1%. Nordson pays out 38.0% of its earnings in the form of a dividend. Sandvik pays out 29.0% 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. Nordson has raised its dividend for 62 consecutive years. Nordson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

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

Nordson presently has a consensus price target of $326.57, indicating a potential upside of 4.81%. Given Nordson’s stronger consensus rating and higher probable upside, research analysts plainly believe Nordson is more favorable than Sandvik.

Volatility and Risk

Nordson has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Sandvik has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Earnings and Valuation

This table compares Nordson and Sandvik”s top-line revenue, earnings per share and valuation.

Sandvik has higher revenue and earnings than Nordson. Sandvik is trading at a lower price-to-earnings ratio than Nordson, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nordson and Sandvik’s net margins, return on equity and return on assets.

Insider and Institutional Ownership

72.1% of Nordson shares are owned by institutional investors. Comparatively, 0.7% of Sandvik shares are owned by institutional investors. 0.8% of Nordson shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Nordson beats Sandvik on 13 of the 18 factors compared between the two stocks.

About Nordson

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Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through three segments: Industrial Precision Solutions; Medical and Fluid Solutions; and Advanced Technology Solutions. The Industrial Precision Solutions segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic and biopolymer melt stream; precision agriculture spraying solutions; fluid components, such as nozzles, pumps, and filters; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods. It also offers automated and manual dispensing products and systems for cold materials, container coating, liquid finishing, and powder coating, as well as ultraviolet equipment used primarily in curing and drying operations. The Medical and Fluid Solutions segment offers medical devices, including cannulas, catheters, and medical balloons; single-use plastic components; precision manual and semi-automated dispensers; minimally invasive interventional delivery devices; and plastic molded syringes, cartridges, tips, and fluid connection components. The Advanced Technology Solutions segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1909 and is headquartered in Westlake, Ohio.

About Sandvik

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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.