Geberit (OTCMKTS:GBERF – Get Free Report) and Daikin Industries,Ltd. (OTCMKTS:DKILY – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares Geberit and Daikin Industries,Ltd.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Geberit | N/A | N/A | N/A |
| Daikin Industries,Ltd. | 5.35% | 8.12% | 4.41% |
Insider & Institutional Ownership
34.4% of Geberit shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Geberit | 0 | 0 | 0 | 0 | N/A |
| Daikin Industries,Ltd. | 0 | 1 | 0 | 0 | 2.00 |
Valuation and Earnings
This table compares Geberit and Daikin Industries,Ltd.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Geberit | N/A | N/A | N/A | $12.63 | N/A |
| Daikin Industries,Ltd. | $30.45 billion | 1.21 | $1.80 billion | $0.61 | 20.59 |
Daikin Industries,Ltd. has higher revenue and earnings than Geberit. Geberit is trading at a lower price-to-earnings ratio than Daikin Industries,Ltd., indicating that it is currently the more affordable of the two stocks.
Dividends
Geberit pays an annual dividend of $4.90 per share. Daikin Industries,Ltd. pays an annual dividend of $0.10 per share and has a dividend yield of 0.8%. Geberit pays out 38.8% of its earnings in the form of a dividend. Daikin Industries,Ltd. pays out 16.4% 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. Daikin Industries,Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Daikin Industries,Ltd. beats Geberit on 6 of the 9 factors compared between the two stocks.
About Geberit
Geberit AG develops, produces, and distributes sanitary products and systems for the residential and commercial construction industry in Switzerland and internationally. The company offers installation and flushing systems, such as installation technology and flushing systems for toilets, including cisterns and fittings; and piping systems consisting of building drainage and supply systems, as well as piping technology for use in buildings for drinking water, heating, gas, and other media. It also provides bathroom systems product comprising bathroom ceramics, furniture, showers, bathtubs, taps and controls, and shower toilets. The company sells its products under the Geberit brand name. It sells its products to wholesalers, plumbers, architects, and sanitary engineers. Geberit AG was founded in 1874 and is headquartered in Rapperswil-Jona, Switzerland.
About Daikin Industries,Ltd.
Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.
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