Reviewing Kongsberg Gruppen ASA (OTCMKTS:NSKFF) and Rheinmetall (OTCMKTS:RNMBY)

Rheinmetall (OTCMKTS:RNMBY) and Kongsberg Gruppen ASA (OTCMKTS:NSKFF) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Rheinmetall and Kongsberg Gruppen ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rheinmetall	N/A	N/A	N/A
Kongsberg Gruppen ASA	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Rheinmetall and Kongsberg Gruppen ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rheinmetall	0	0	1	1	3.50
Kongsberg Gruppen ASA	0	0	0	0	0.00

Institutional & Insider Ownership

0.3% of Rheinmetall shares are owned by institutional investors. Comparatively, 15.9% of Kongsberg Gruppen ASA shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Rheinmetall pays an annual dividend of $1.28 per share and has a dividend yield of 0.4%. Kongsberg Gruppen ASA pays an annual dividend of $3.19 per share and has a dividend yield of 2.1%. Rheinmetall pays out 595.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kongsberg Gruppen ASA pays out 31.4% of its earnings in the form of a dividend. Kongsberg Gruppen ASA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Rheinmetall and Kongsberg Gruppen ASA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rheinmetall	N/A	N/A	N/A	$0.21	1,459.69
Kongsberg Gruppen ASA	N/A	N/A	N/A	$10.16	15.17

Kongsberg Gruppen ASA is trading at a lower price-to-earnings ratio than Rheinmetall, indicating that it is currently the more affordable of the two stocks.

About Rheinmetall

Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.

About Kongsberg Gruppen ASA

Kongsberg Gruppen ASA, together with its subsidiaries, provides high-tech systems and solutions primarily to customers in the maritime and defense markets. The company operates through three segments: Kongsberg Maritime, Kongsberg Defence & Aerospace, and Other. The Kongsberg Maritime segment offers solutions and systems for bridge and control systems, which include dynamic positioning, propulsion control, and navigation, as well as automation systems; energy solutions and ship design services; and propellers, thrusters, water jet systems, and systems for offshore manoeuvring of maritime vessels. This segment also provides winches for mooring, anchor handling, and special systems for offshore vessels, tugs, marine vessels, and various other classes of vessel, as well as cranes; hydroacoustics; autonomous underwater vessels and solutions for autonomous maritime vessels; and products related to fisheries, systems for underwater mapping, and sensors and solutions for specialist vessels. The Kongsberg Defence & Aerospace segment offers various systems and services to the defense industry. It provides air defense and combat systems, sonars, and navigation for marine vessels and submarines, as well as integrated command and control systems; remote tower solutions for airports; remote control weapon stations for land-based vehicles and marine vessels; products for military tactical communication; naval strike and air-to-surface missiles; and lightweight composite and titanium components for F-35 combat aircraft. This segment also offers components and services to the space industry, as well as port monitoring systems; and maintenance, repair, and overhaul services. The Other segment focuses on digitalization within the oil and gas, wind, and merchant marine markets. It operates primarily in Norway, Europe, North America, South America, Asia, Australia, and South Africa. Kongsberg Gruppen ASA was founded in 1814 and is headquartered in Kongsberg, Norway.