Head-To-Head Survey: A. O. Smith (NYSE:AOS) vs. Taikisha (OTCMKTS:TKIAF)

Taikisha (OTCMKTS:TKIAF) and A. O. Smith (NYSE:AOS) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Earnings and Valuation

This table compares Taikisha and A. O. Smith”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taikisha	N/A	N/A	N/A	$152.92	0.15
A. O. Smith	$3.83 billion	2.16	$546.20 million	$3.60	16.91

A. O. Smith has higher revenue and earnings than Taikisha. Taikisha is trading at a lower price-to-earnings ratio than A. O. Smith, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Taikisha and A. O. Smith’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taikisha	N/A	N/A	N/A
A. O. Smith	13.15%	27.88%	15.21%

Dividends

Taikisha pays an annual dividend of $35.84 per share and has a dividend yield of 159.9%. A. O. Smith pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Taikisha pays out 23.4% of its earnings in the form of a dividend. A. O. Smith pays out 40.0% 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. A. O. Smith has increased its dividend for 31 consecutive years. Taikisha is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

76.1% of A. O. Smith shares are held by institutional investors. 0.5% of A. O. Smith shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Taikisha and A. O. Smith, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taikisha	0	0	0	0	0.00
A. O. Smith	2	5	2	0	2.00

A. O. Smith has a consensus price target of $67.75, suggesting a potential upside of 11.30%. Given A. O. Smith’s stronger consensus rating and higher probable upside, analysts plainly believe A. O. Smith is more favorable than Taikisha.

Summary

A. O. Smith beats Taikisha on 11 of the 14 factors compared between the two stocks.

About Taikisha

Taikisha Ltd. engages in the design and construction of heating, ventilation, air conditioning, and paint finishing systems. Its operations are carried out through the following segments: Green Technology Systems and Paint Finishing Systems. The Green Technology Systems segment encompasses construction and installation of HVAC facilities, cleanrooms, plumbing and sanitary equipment, treatment systems, and HVAC facilities for buildings, factories, industrial plants, laboratories, hospitals, and schools. The Paint Finishing Systems segment designs, manages, and constructs paint coating systems for automobiles, trains, and aircrafts. The company was founded by Takeshi Uenishi on April 10, 1913 and is headquartered in Tokyo, Japan.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.