Comparing Kawasaki Heavy Industries (OTCMKTS:KWHIY) & Applied Industrial Technologies (NYSE:AIT)

Kawasaki Heavy Industries (OTCMKTS:KWHIY) and Applied Industrial Technologies (NYSE:AIT) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Profitability

This table compares Kawasaki Heavy Industries and Applied Industrial Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kawasaki Heavy Industries	3.49%	10.50%	2.55%
Applied Industrial Technologies	8.61%	21.86%	12.83%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Kawasaki Heavy Industries and Applied Industrial Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kawasaki Heavy Industries	0	1	0	0	2.00
Applied Industrial Technologies	0	1	6	0	2.86

Applied Industrial Technologies has a consensus price target of $287.50, indicating a potential upside of 11.67%. Given Applied Industrial Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Applied Industrial Technologies is more favorable than Kawasaki Heavy Industries.

Risk & Volatility

Kawasaki Heavy Industries has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

93.5% of Applied Industrial Technologies shares are owned by institutional investors. 1.6% of Applied Industrial Technologies shares are owned by insiders. 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.

Dividends

Kawasaki Heavy Industries pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Applied Industrial Technologies pays an annual dividend of $1.84 per share and has a dividend yield of 0.7%. Kawasaki Heavy Industries pays out 9.8% of its earnings in the form of a dividend. Applied Industrial Technologies pays out 17.7% 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. Applied Industrial Technologies has raised its dividend for 16 consecutive years. Applied Industrial Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Kawasaki Heavy Industries and Applied Industrial Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kawasaki Heavy Industries	$13.98 billion	0.76	$580.81 million	$1.53	16.58
Applied Industrial Technologies	$4.56 billion	2.13	$392.99 million	$10.39	24.78

Kawasaki Heavy Industries has higher revenue and earnings than Applied Industrial Technologies. Kawasaki Heavy Industries is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Applied Industrial Technologies beats Kawasaki Heavy Industries on 13 of the 16 factors compared between the two stocks.

About Kawasaki Heavy Industries

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.