Hammond Power Solutions (OTCMKTS:HMDPF – Get Free Report) and Furukawa Electric (OTCMKTS:FUWAY – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations for Hammond Power Solutions and Furukawa Electric, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hammond Power Solutions | 0 | 0 | 1 | 0 | 3.00 |
| Furukawa Electric | 1 | 0 | 0 | 0 | 1.00 |
Hammond Power Solutions presently has a consensus price target of C$29.00, suggesting a potential downside of 32.85%. Given Hammond Power Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Hammond Power Solutions is more favorable than Furukawa Electric.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hammond Power Solutions | N/A | N/A | N/A | C$0.39 | 110.74 |
| Furukawa Electric | N/A | N/A | N/A | $62.81 | 0.13 |
Furukawa Electric is trading at a lower price-to-earnings ratio than Hammond Power Solutions, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
30.8% of Hammond Power Solutions shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Hammond Power Solutions and Furukawa Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hammond Power Solutions | N/A | N/A | N/A |
| Furukawa Electric | N/A | N/A | N/A |
Dividends
Hammond Power Solutions pays an annual dividend of C$0.23 per share and has a dividend yield of 0.5%. Furukawa Electric pays an annual dividend of $30.31 per share and has a dividend yield of 361.5%. Hammond Power Solutions pays out 59.0% of its earnings in the form of a dividend. Furukawa Electric pays out 48.3% 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. Furukawa Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Hammond Power Solutions beats Furukawa Electric on 5 of the 8 factors compared between the two stocks.
About Hammond Power Solutions
Hammond Power Solutions Inc., together with its subsidiaries, engages in the design, manufacture, and sale of various transformers in Canada, the United States, Mexico, India, and internationally. It offers custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers, standard electrical transformers, and wound magnetic products. The company also provides buck-boost, control, distribution, drive isolation, encapsulated, furnace, multi-pulse, pad mounted, regulating, and medium voltage distribution transformers, as well as reactors, active harmonic filters, dV/dT filters, and unitized substations. It serves renewable energy, commercial infrastructure, and industrial markets. Hammond Power Solutions Inc. was founded in 1917 and is based in Guelph, Canada.
About Furukawa Electric
Furukawa Electric Co., Ltd. manufactures and sells telecommunications, energy, automobile, electronic, and construction products worldwide. It operates through Infrastructure, Electronics & Automotive Systems, Functional Products, and Service and Developments segments. The company offers telecommunications products, such as broadband systems, routers/network equipment, and wireless products; and optical fiber cables and identifiers, optical closures/termination boxes, optical connectors/cords, optical fiber identifier, fusion splicers/optical connecting tools, optical fiber line monitoring/management systems, optical active component, and metal communication cables, as well as wiring materials. It also offers energy products, including power cables, cable-related equipment/connection and terminal products, industrial machine-related equipment, fire-prevention products, electrical conductors, power distribution products, and cable conduit materials; and automobile products comprising wire harnesses, connectors, functional products and materials, and interior finishing materials. In addition, the company provides electronics parts materials, fluorescent lamps, LED reflectors, and tapes, as well as healthcare products, such as shape memory/super-elastic alloys; construction products, including water distribution piping and fluid transport piping products, heat insulators, and cable-related equipment/connection and terminal products; superconducting cables, industrial lasers, flow cytometers, and fluorescent silica nanoparticles; and maintenance/inspection solutions. Furukawa Electric Co., Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.
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