Financial Review: Garmin (NYSE:GRMN) vs. Hexagon AB (publ) (OTCMKTS:HXGBY)

Garmin (NYSE:GRMN) and Hexagon AB (publ) (OTCMKTS:HXGBY) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Dividends

Garmin pays an annual dividend of $2.92 per share and has a dividend yield of 2.1%. Hexagon AB (publ) pays an annual dividend of $0.09 per share and has a dividend yield of 0.8%. Garmin pays out 43.5% of its earnings in the form of a dividend. Hexagon AB (publ) pays out 8.6% 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. Garmin has raised its dividend for 1 consecutive years. Garmin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Garmin and Hexagon AB (publ)’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$5.23 billion	5.19	$1.29 billion	$6.71	21.10
Hexagon AB (publ)	N/A	N/A	N/A	$1.05	10.74

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

Analyst Recommendations

This is a summary of recent ratings for Garmin and Hexagon AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	0	6	0	1	2.29
Hexagon AB (publ)	0	1	2	0	2.67

Garmin currently has a consensus target price of $142.33, suggesting a potential upside of 0.51%. Given Garmin’s higher probable upside, analysts plainly believe Garmin is more favorable than Hexagon AB (publ).

Insider and Institutional Ownership

73.4% of Garmin shares are held by institutional investors. Comparatively, 0.0% of Hexagon AB (publ) shares are held by institutional investors. 19.9% of Garmin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Garmin and Hexagon AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garmin	24.67%	16.60%	13.36%
Hexagon AB (publ)	N/A	N/A	N/A

Summary

Garmin beats Hexagon AB (publ) on 12 of the 15 factors compared between the two stocks.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

About Hexagon AB (publ)

Hexagon AB (publ) provides geospatial and industrial enterprise solutions worldwide. The company offers analysis and management, machine control, embedded electronics, monitoring, and planning and optimization solutions to agriculture division; 3D design and visualization, enterprise asset and asset lifecycle management, OT/ICS cyber security, engineering and schematics, enterprise project performance, operation and maintenance, procurement, fabrication, and construction services for asset lifecycle intelligence division; GNSS and SMART antennas, anti-jam systems, autonomy kits and services, correction services, GNSS/INS receivers and post processing, resilience and integrity technology, and visualization software for autonomy and positioning division; and 3D surveillance, AEC and survey software, geospatial content, machine control, digital realities platform, laser scanning and measurement tools, levels, total stations, airborne, monitoring, document and verification solutions, detection, GNSS, and mobile mapping system to geosystem division. It also provides CAD CAM and CAE software, CNC simulation and computed tomography software, measurement and inspection hardware and software, manufacturing project management, digital transformation for manufacturing, and quality management systems to manufacturing intelligence division; HxGN mine protect, operate, monitoring, enterprise, measure, and plan services to mining division; intelligent business, continuous improvement, environmental health and safety, and production management for Xalt Solution; and absolute scanner speed, modular, and automation solutions. In addition, the company offers GIS, imagery analysis and data management, collaboration, government, transportation, and defense solutions; and utility GIS and outage management services, and public safety and geospatial platform to safety, infrastructure, and geospatial division. The company was founded in 1975 and is based in Stockholm, Sweden.