Critical Comparison: Schindler (OTCMKTS:SHLAF) vs. FLSmidth & Co. A/S (OTCMKTS:FLIDY)

Schindler (OTCMKTS:SHLAF) and FLSmidth & Co. A/S (OTCMKTS:FLIDY) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Schindler and FLSmidth & Co. A/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schindler	1	1	2	0	2.25
FLSmidth & Co. A/S	0	2	0	1	2.67

Earnings & Valuation

This table compares Schindler and FLSmidth & Co. A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schindler	N/A	N/A	N/A	$6.85	48.88
FLSmidth & Co. A/S	N/A	N/A	N/A	$0.74	10.17

FLSmidth & Co. A/S is trading at a lower price-to-earnings ratio than Schindler, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Schindler and FLSmidth & Co. A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schindler	N/A	N/A	N/A
FLSmidth & Co. A/S	N/A	N/A	N/A

Institutional and Insider Ownership

17.3% of Schindler shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Schindler pays an annual dividend of $2.20 per share and has a dividend yield of 0.7%. FLSmidth & Co. A/S pays an annual dividend of $0.06 per share and has a dividend yield of 0.8%. Schindler pays out 32.1% of its earnings in the form of a dividend. FLSmidth & Co. A/S pays out 8.1% 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. FLSmidth & Co. A/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Schindler

Schindler Holding AG engages in the production, installation, maintenance, and modernization of elevators, escalators, and moving walks worldwide. It offers Schindler Ahead SmartMirror, a mirror and a screen for entertainment or information; Schindler Ahead AdScreen that delivers messages on a special screen inside the elevator; and Schindler Ahead MediaScreen, an in-car media solution for elevators. In addition, the company provides digital services, including Schindler Ahead ActionBoard, which collates all the important statistics, activities, and performance data of elevators and escalators; and Schindler Ahead RemoteMonitoring, which provides information about equipment's health. The company was founded in 1874 and is headquartered in Hergiswil, Switzerland.

About FLSmidth & Co. A/S

FLSmidth & Co. A/S provides flowsheet technology and service solutions for the mining and cement industries in North America, South America, Europe, North and Sub-Saharan Africa, the Middle East, Central and South Asia, the Asia Pacific, and Australia. It operates in three segments: Mining, Cement, and Non-Core Activities. The company provides mining equipment, accessories, spare parts, and wear parts for use in centrifugation and classification; conveying; crushing and sizing; filtration; flotation and attrition; hydromet; material handling; milling and grinding; mine shaft systems; precious metals recovery; process control and optimisation; pyromet; sampling, preparation and analysis; screening; slurry pumping; thickening and clarifying; and wear solutions. It offers online mining equipment and process training courses; mining service centers; testing and research services; and operational services, including PerformanceIQ, online condition monitoring, precious metals, gravity concentrator, asset health, and mine planning services, as well as operating procedure audits, liner profiling and scanning, technical advisory, electrical and automation audits, and upgrades and rebuilds. The company sells its products under the ABON, AIRLOQ, AIRTECH, BUFFALO, Dorr-Oliver, EXCEL, Fuller, KREBS, MAAG GEAR, PFISTER, and VENTOMATIC brands. It serves the aggregates, cement, chemical, food and pharmaceuticals, mining, oil and gas refining, port and terminals, power utilities, pulp and paper, steel, waste to energy, and water treatment industries. The company was formerly known as FLS Industries and changed its name to FLSmidth & Co. A/S in January 2005. FLSmidth & Co. A/S was founded in 1882 and is headquartered in Valby, Denmark.