Head-To-Head Survey: Wartsila (OTCMKTS:WRTBY) and Vestas Wind Systems AS (OTCMKTS:VWDRY)

Wartsila (OTCMKTS:WRTBY) and Vestas Wind Systems AS (OTCMKTS:VWDRY) are both large-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Dividends

Wartsila pays an annual dividend of $0.11 per share and has a dividend yield of 1.4%. Vestas Wind Systems AS pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Wartsila pays out 47.8% of its earnings in the form of a dividend. Vestas Wind Systems AS pays out 6.7% 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.

Analyst Ratings

This is a summary of current ratings and target prices for Wartsila and Vestas Wind Systems AS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wartsila	3	2	0	0	1.40
Vestas Wind Systems AS	1	4	1	2	2.50

Risk and Volatility

Wartsila has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Vestas Wind Systems AS has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Wartsila and Vestas Wind Systems AS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wartsila	9.08%	24.14%	7.85%
Vestas Wind Systems AS	4.22%	23.30%	3.15%

Earnings & Valuation

This table compares Wartsila and Vestas Wind Systems AS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wartsila	$7.82 billion	2.91	$708.26 million	$0.23	33.43
Vestas Wind Systems AS	$21.29 billion	1.34	$880.23 million	$0.30	31.37

Vestas Wind Systems AS has higher revenue and earnings than Wartsila. Vestas Wind Systems AS is trading at a lower price-to-earnings ratio than Wartsila, indicating that it is currently the more affordable of the two stocks.

About Wartsila

Wärtsilä Oyj Abp offers technologies and lifecycle solutions for the marine and energy markets worldwide. It offers engine power plant products, such as gas, multi-fuel, and diesel engines; GEMS Digital Energy Platform, a smart software platform that monitors, controls, and optimizes energy assets on site and portfolio levels; GridSolv Quantum, a fully integrated energy storage solution, which enables ease of deployment and sustainable energy optimization; GEMS Power Plant Controllers; GEMS Fleet Director, which provides centralized real-time visibility into a global fleet of power plants; and GEMS Grid Controller that conducts intelligent grid control and optimized power management for microgrids of various sizes. The company also provides GEMS smart energy management software platform to remotely monitor, operate, identify, and diagnose assets; lifecycle solutions for power plants; power and propulsion products, such as electric shipping and hybrid ships, engine and generating sets, propulsors and gears, and shaft line solutions; liquid and gas handling products, including ballast water management, freshwater generation, waste and wastewater treatment, gas solutions, and exhaust treatment equipment; port and fleet optimization; simulation and training solutions; and automation, navigation, and control systems. The company was founded in 1834 and is headquartered in Helsinki, Finland.

About Vestas Wind Systems AS

Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.