Comparing thyssenkrupp (OTCMKTS:TKAMY) and Fuchs (OTCMKTS:FUPBY)

thyssenkrupp (OTCMKTS:TKAMY) and Fuchs (OTCMKTS:FUPBY) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Dividends

thyssenkrupp pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Fuchs pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. thyssenkrupp pays out -5.0% of its earnings in the form of a dividend. Fuchs pays out 27.0% 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.

Valuation and Earnings

This table compares thyssenkrupp and Fuchs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
thyssenkrupp	$38.01 billion	0.15	-$1.63 billion	($1.80)	-5.16
Fuchs	$3.83 billion	1.82	$306.29 million	$0.63	19.89

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

Volatility and Risk

thyssenkrupp has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Fuchs has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
thyssenkrupp	-3.63%	-11.24%	-4.18%
Fuchs	8.52%	16.61%	12.17%

Analyst Ratings

This is a summary of current ratings for thyssenkrupp and Fuchs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
thyssenkrupp	1	0	0	2	3.00
Fuchs	1	0	0	0	1.00

Summary

Fuchs beats thyssenkrupp on 8 of the 13 factors compared between the two stocks.

About thyssenkrupp

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

About Fuchs

Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.