Saab AB (publ) (OTCMKTS:SAABF) & Sypris Solutions (NASDAQ:SYPR) Critical Review

Saab AB (publ) (OTCMKTS:SAABF) and Sypris Solutions (NASDAQ:SYPR) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

21.4% of Saab AB (publ) shares are owned by institutional investors. Comparatively, 44.7% of Sypris Solutions shares are owned by institutional investors. 47.9% of Sypris Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Saab AB (publ) and Sypris Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab AB (publ)	0	0	0	0	0.00
Sypris Solutions	1	0	0	0	1.00

Valuation and Earnings

This table compares Saab AB (publ) and Sypris Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saab AB (publ)	N/A	N/A	N/A	$7.94	9.17
Sypris Solutions	$116.19 million	0.41	-$6.34 million	($0.42)	-4.90

Saab AB (publ) has higher earnings, but lower revenue than Sypris Solutions. Sypris Solutions is trading at a lower price-to-earnings ratio than Saab AB (publ), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Saab AB (publ) and Sypris Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab AB (publ)	N/A	N/A	N/A
Sypris Solutions	-8.23%	-54.45%	-8.87%

Summary

Saab AB (publ) beats Sypris Solutions on 5 of the 9 factors compared between the two stocks.

About Saab AB (publ)

Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.

About Sypris Solutions

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.