Comparing Sumitomo Heavy (OTCMKTS:SOHVY) & Dover (NYSE:DOV)

Sumitomo Heavy (OTCMKTS:SOHVY) and Dover (NYSE:DOV) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares Sumitomo Heavy and Dover”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Heavy	$7.08 billion	0.42	$50.97 million	($0.03)	-206.00
Dover	$7.75 billion	2.94	$2.70 billion	$16.58	10.03

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

Insider and Institutional Ownership

84.5% of Dover shares are owned by institutional investors. 1.3% of Dover shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sumitomo Heavy and Dover’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Heavy	-0.29%	3.86%	1.97%
Dover	29.29%	18.19%	9.86%

Analyst Ratings

This is a summary of current ratings for Sumitomo Heavy and Dover, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Heavy	0	0	0	0	0.00
Dover	0	5	8	0	2.62

Dover has a consensus target price of $212.67, indicating a potential upside of 27.94%. Given Dover’s stronger consensus rating and higher possible upside, analysts clearly believe Dover is more favorable than Sumitomo Heavy.

Dividends

Sumitomo Heavy pays an annual dividend of $0.14 per share and has a dividend yield of 2.3%. Dover pays an annual dividend of $2.08 per share and has a dividend yield of 1.3%. Sumitomo Heavy pays out -466.7% of its earnings in the form of a dividend. Dover pays out 12.5% 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. Dover has increased its dividend for 70 consecutive years. Sumitomo Heavy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Sumitomo Heavy has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Dover has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

Dover beats Sumitomo Heavy on 15 of the 17 factors compared between the two stocks.

About Sumitomo Heavy

Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Japan and internationally. Its Mechatronics segment offers gearmotors, gearboxes, motion control drives, motors and inverters, drive solutions, precision positioning equipment, laser systems, control systems, motion components, and collaborative robot. The company's Industrial Machinery segment provides injection molding machines, cryocoolers, ion implanters, PET tracer production systems, vacuum coasting equipment, steel tube air forming, non-destructive inspections, clean room system, cast iron and steel rolls for hot rolling, and coolant systems. Its Logistics & Construction segment offers hydraulic excavators, crawler cranes, material handing systems, parking systems, transfer molding presses, cryopumps, proton therapy systems, forging presses, lifting magnets, spinning machines, dust collectors, surface grinding machines, extrusion coating line, road machinery, foundation machines, logistics systems, and forklifts. The company's Energy & Lifelines segment provides circulating fluidized bed (CFB) boilers, liquid air energy storage, electrostatic precipitators, evaporation and crystallization facilities, waste heat boilers, CFB scrubbers, flue gas denitrification systems, industrial wastewater treatment facilities, steam turbines, distillation technology and extractors, mixing vessels, and food and beverage manufacturing facilities. This segment also offers bubbling fluidized bed boilers, rotary kiln-type recycling facilities, ash handling systems, fluidized bed gasifiers, waste-to-energy plants baghouses, digital services, water and sewage treatment systems, process pumps, reactor vessels, coke oven machines, and oils tankers. The company provides IT solutions and security services. Sumitomo Heavy Industries, Ltd. was founded in 1888 and is headquartered in Tokyo, Japan.

About Dover

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.