Head-To-Head Survey: Melrose Industries (OTCMKTS:MLSPF) versus Savaria (OTCMKTS:SISXF)

Melrose Industries (OTCMKTS:MLSPFGet Free Report) and Savaria (OTCMKTS:SISXFGet Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Profitability

This table compares Melrose Industries and Savaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Melrose Industries N/A N/A N/A
Savaria N/A N/A N/A

Dividends

Melrose Industries pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Savaria pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. Melrose Industries pays out 15.6% of its earnings in the form of a dividend. Savaria pays out 56.8% 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. Melrose Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Melrose Industries and Savaria’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Melrose Industries N/A N/A N/A $0.53 15.25
Savaria N/A N/A N/A $0.22 59.77

Melrose Industries is trading at a lower price-to-earnings ratio than Savaria, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Melrose Industries and Savaria, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Melrose Industries 0 1 0 0 2.00
Savaria 0 0 2 0 3.00

Savaria has a consensus price target of $22.50, indicating a potential upside of 71.10%. Given Savaria’s stronger consensus rating and higher probable upside, analysts plainly believe Savaria is more favorable than Melrose Industries.

Insider and Institutional Ownership

47.0% of Melrose Industries shares are held by institutional investors. Comparatively, 6.6% of Savaria shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

About Melrose Industries

(Get Free Report)

Melrose Industries PLC, together with its subsidiaries, engages in the aerospace, automotive, powder metallurgy, and other industrial businesses in the United Kingdom, rest of Europe, North America, and internationally. Its Aerospace segment provides airframe and engine structures, and electrical interconnection systems for the aerospace industry in civil airframe and defense platforms. The company's Automotive segment designs, develops, manufactures, and integrates driveline technologies, including electric vehicle components. Its Powder Metallurgy segment offers precision powder metal parts for the automotive and industrial sectors; and metal powder for powder metallurgy, as well as commercializes additive manufacturing. The company's Other Industrial segment designs, manufactures, and distributes ergonomic products for use in a various working, learning, and healthcare environments; and offers metal hydride hydrogen storage solutions for use in a range of industrial and commercial applications. The company was formerly known as New Melrose Industries PLC and changed its name to Melrose Industries PLC in November 2015. Melrose Industries PLC was founded in 2003 and is headquartered in London, the United Kingdom.

About Savaria

(Get Free Report)

Savaria Corporation provides accessibility solutions for the elderly and physically challenged people in Canada, the United States, Europe, and internationally. The company operates in two segments, Accessibility and Patient Care. The Accessibility segment designs, manufactures, distributes, and installs a portfolio of accessibility products, including commercial and home elevators, stairlifts, platform lifts, and wheelchair lowered-floor accessible conversions for selected brands of minivans, personal, residential, or commercial applications. The Patient Care segment designs, manufactures, distributes, and installs ceiling lifts, patient transfer slings and accessories, floor lifts, standing aids, bathing equipment, medical beds, therapeutic support surfaces, and pressure management products used in healthcare facilities and home care settings. It sells its products through dealers or direct stores to end-user customers. The company was founded in 1979 and is headquartered in Laval, Canada.

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