Critical Review: Haier Electronics Group (OTCMKTS:HRELY) versus Epiroc AB (publ) (OTCMKTS:EPOKY)

Haier Electronics Group (OTCMKTS:HRELY) and Epiroc AB (publ) (OTCMKTS:EPOKY) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Earnings and Valuation

This table compares Haier Electronics Group and Epiroc AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haier Electronics Group	$10.98 billion	1.15	$1.06 billion	$2.11	21.27
Epiroc AB (publ)	$6.02 billion	4.11	$825.95 million	$0.68	30.10

Haier Electronics Group has higher revenue and earnings than Epiroc AB (publ). Haier Electronics Group is trading at a lower price-to-earnings ratio than Epiroc AB (publ), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Haier Electronics Group and Epiroc AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haier Electronics Group	N/A	N/A	N/A
Epiroc AB (publ)	13.74%	21.50%	10.73%

Volatility and Risk

Haier Electronics Group has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Epiroc AB (publ) has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Dividends

Haier Electronics Group pays an annual dividend of $0.58 per share and has a dividend yield of 1.3%. Epiroc AB (publ) pays an annual dividend of $0.17 per share and has a dividend yield of 0.8%. Haier Electronics Group pays out 27.5% of its earnings in the form of a dividend. Epiroc AB (publ) pays out 25.0% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Haier Electronics Group and Epiroc AB (publ), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haier Electronics Group	0	0	0	0	0.00
Epiroc AB (publ)	0	2	0	0	2.00

Summary

Epiroc AB (publ) beats Haier Electronics Group on 8 of the 12 factors compared between the two stocks.

About Haier Electronics Group

As of December 21, 2020, operates as a subsidiary of Haier Smart Home Co., Ltd.

About Epiroc AB (publ)

Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in North America, Europe, South America, Europe, Africa, the Middle East, Asia, and Australia. It operates in two segments, Equipment & Service, and Tools & Attachments. The Equipment & Service segment provides equipment and solutions for rock drilling, rock excavation, rock reinforcement, loading and haulage, and ventilation systems, as well as drilling equipment for exploration, and water and energy; and related spare parts and services for the mining and infrastructure industries. This segment offers solutions for automation, digitalization, and electrification. The Tools & Attachments segment provides consumables for rock drilling, such as drill bits and drill rods, as well as tools for exploration drilling and rock reinforcement; ground engaging tools, such as cast lips, teeth, and protective shrouds, as well as digital solutions for the mining industry; and hydraulic attachments, including hydraulic breakers, shears and pulverizers, concrete cutters and busters, drum cutters, excavator grapples, excavator magnets, hydraulic compactors, crusher and screening buckets, auger drive units, and couplers and thumbs, as well as HATCON that is a remote monitoring tool. In addition, the company offers aftermarket services, including new circular services, productivity-enhancing technology-agnostic digital solutions, mid-life upgrades, diesel-to-battery conversions, and remanufacturing of components. Epiroc AB (publ) was founded in 1873 and is headquartered in Nacka, Sweden.