Analyzing GUD (OTCMKTS:GUDHF) and Trelleborg AB (publ) (OTCMKTS:TBABF)

GUD (OTCMKTS:GUDHF – Get Rating) and Trelleborg AB (publ) (OTCMKTS:TBABF – Get Rating) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional & Insider Ownership

16.5% of GUD shares are owned by institutional investors. Comparatively, 41.0% of Trelleborg AB (publ) shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

GUD pays an annual dividend of C$0.36 per share and has a dividend yield of 5.9%. Trelleborg AB (publ) pays an annual dividend of $2.28 per share and has a dividend yield of 8.8%. GUD pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trelleborg AB (publ) pays out 29.7% of its earnings in the form of a dividend. Trelleborg AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GUD	N/A	N/A	N/A
Trelleborg AB (publ)	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GUD	N/A	N/A	N/A	C$0.42	14.55
Trelleborg AB (publ)	N/A	N/A	N/A	$7.66	3.39

Trelleborg AB (publ) is trading at a lower price-to-earnings ratio than GUD, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GUD and Trelleborg AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GUD	0	1	0	0	2.00
Trelleborg AB (publ)	0	2	1	0	2.33

GUD currently has a consensus target price of C$9.95, suggesting a potential upside of 62.05%. Given GUD’s higher possible upside, equities analysts plainly believe GUD is more favorable than Trelleborg AB (publ).

Summary

Trelleborg AB (publ) beats GUD on 6 of the 8 factors compared between the two stocks.

About GUD

(Get Rating)

GUD Holdings Limited, through its subsidiaries, engages in the manufacture and importation, distribution, and sale of automotive products, pumps, pool and spa systems, and water pressure systems in Australia, New Zealand, Thailand, South Korea, France, and the United States. It operates through Automotive, Auto Pacific Group, and Davey segments. The Automotive segment offers automotive and heavy-duty filters for cars, trucks, and agricultural and mining equipment; and fuel pumps and associated products for the automotive after-market. The Auto Pacific Group segment manufactures and markets towing, trailering, functional accessories, and associated products for the automotive aftermarket and original equipment manufacturer customers. The Davey segment provides pumps and pressure systems for household and farm water; water transfer pumps; swimming pool products; spa bath controllers; and pumps and water purification equipment. The company was incorporated in 1958 and is based in Altona North, Australia.

About Trelleborg AB (publ)

(Get Rating)

Trelleborg AB engages in the development of polymer technology system. It operates through the following segments: Trelleborg Industrial Solutions, Trelleborg Sealing Solutions, Trelleborg Wheel Systems. The Trelleborg Industrial Solutions segment provides fluid handling solutions, industrial antivibration solutions and niche applications in sealing systems. The Trelleborg Sealing Solutions segment includes precision seals for industrial, aerospace, and automotive applications. The Trelleborg Wheel Systems business area offers wheels and wheel systems for high load materials handling vehicles such as tractors, forklift trucks, and agricultural and forestry machinery. The company was founded by Henry Dunker in 1905 and is headquartered in Trelleborg, Sweden.