Critical Survey: Siemens (OTCMKTS:SIEGY) and Legrand (OTCMKTS:LGRVF)

Siemens (OTCMKTS:SIEGY) and Legrand (OTCMKTS:LGRVF) are both large-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for Siemens and Legrand, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Siemens 0 1 5 0 2.83
Legrand 1 2 0 0 1.67

Volatility & Risk

Siemens has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Legrand has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Siemens and Legrand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Siemens 5.18% 9.15% 3.06%
Legrand 12.91% 17.04% 7.64%

Dividends

Siemens pays an annual dividend of $1.60 per share and has a dividend yield of 2.6%. Legrand does not pay a dividend. Siemens pays out 39.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Siemens and Legrand’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Siemens $96.54 billion 1.10 $6.91 billion $4.04 15.53
Legrand $7.08 billion 2.99 $911.38 million $3.39 23.39

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

Institutional & Insider Ownership

1.2% of Siemens 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.

Siemens Company Profile

Siemens Aktiengesellschaft operates in the fields of electrification, automation, and digitalization worldwide. Its Power and Gas segment offers gas and steam turbines, generators, compressor trains, integrated power plant solutions, and instrumentation and control systems for power generation. The company's Energy Management segment offers software, products, systems, solutions, and services for transmitting, distributing, and managing electrical power, as well as for providing intelligent power infrastructure. Its Building Technologies segment provides automation technologies and digital services for fire safety, security, building automation, heating, ventilation, air conditioning, and energy management. The company's Mobility segment offers passenger and freight transportation, including rail vehicles, rail automation systems, rail electrification systems, road traffic technology, digital solutions, and related services; and mobility system services. Its Digital Factory segment provides automation technologies used in manufacturing industries; integrated automation systems; and production lifecycle software. Its Process Industries and Drives segment offers couplings, gears, motors and converters, process instrumentation, process analytics devices, wired and wireless communication, industrial identification and power supplies, and decentralized control systems and industrial software. The company's Healthineers segment provides medical technology and software solutions; and clinical consulting and training. Its Siemens Gamesa Renewable Energy segment offers geared and direct drive wind turbines for onshore and offshore applications; and provides services for wind farms. Its Financial Services segment offers leasing solutions and equipment; and debt and equity investment products. Siemens Aktiengesellschaft has a strategic alliance with HP Inc. The company was founded in 1847 and is headquartered in Munich, Germany.

Legrand Company Profile

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers a range of products and solutions that connect buildings to energy, data, and lighting, such as switches, power sockets, distribution panels, circuit breakers, lighting management products, security systems, trunkings, floor boxes, enclosures, sockets, screen mounts, uninterruptible power supply devices, tubes, ducts, extensions, and others. Its products are used in hotels, offices, data centers, and shopping centers, as well as residential, healthcare, and industrial sectors. The company was founded in 1865 and is headquartered in Limoges, France.

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