Head-To-Head Analysis: Vestas Wind Systems AS (OTCMKTS:VWDRY) & Enersys (NYSE:ENS)

Vestas Wind Systems AS (OTCMKTS:VWDRY) and Enersys (NYSE:ENS) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Volatility & Risk

Vestas Wind Systems AS has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Enersys has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Dividends

Vestas Wind Systems AS pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Enersys pays an annual dividend of $1.05 per share and has a dividend yield of 0.8%. Vestas Wind Systems AS pays out 2.9% of its earnings in the form of a dividend. Enersys pays out 12.3% 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. Enersys has raised its dividend for 2 consecutive years. Enersys is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Vestas Wind Systems AS and Enersys”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vestas Wind Systems AS	$18.72 billion	1.30	$539.97 million	$0.34	23.62
Enersys	$3.73 billion	1.36	$363.73 million	$8.55	16.08

Vestas Wind Systems AS has higher revenue and earnings than Enersys. Enersys is trading at a lower price-to-earnings ratio than Vestas Wind Systems AS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vestas Wind Systems AS and Enersys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vestas Wind Systems AS	4.08%	23.25%	3.06%
Enersys	9.60%	21.99%	10.24%

Analyst Recommendations

This is a summary of current recommendations for Vestas Wind Systems AS and Enersys, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vestas Wind Systems AS	1	3	1	0	2.00
Enersys	0	0	4	1	3.20

Enersys has a consensus price target of $126.00, indicating a potential downside of 8.38%. Given Enersys’ stronger consensus rating and higher probable upside, analysts clearly believe Enersys is more favorable than Vestas Wind Systems AS.

Insider and Institutional Ownership

94.9% of Enersys shares are held by institutional investors. 0.9% of Enersys shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Enersys beats Vestas Wind Systems AS on 12 of the 18 factors compared between the two stocks.

About Vestas Wind Systems AS

Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.

About Enersys

EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.