Siemens (OTCMKTS: SIEGY) and General Electric (NYSE:GE) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.
Earnings and Valuation
This table compares Siemens and General Electric’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Siemens||$89.54 billion||1.20||$6.68 billion||$3.90||16.15|
|General Electric||$122.09 billion||0.93||-$5.79 billion||$1.05||12.50|
Institutional & Insider Ownership
1.0% of Siemens shares are owned by institutional investors. Comparatively, 56.3% of General Electric shares are owned by institutional investors. 1.1% of General Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Siemens pays an annual dividend of $1.69 per share and has a dividend yield of 2.7%. General Electric pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. Siemens pays out 43.3% of its earnings in the form of a dividend. General Electric pays out 45.7% 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.
This table compares Siemens and General Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Siemens and General Electric, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Electric has a consensus target price of $18.17, indicating a potential upside of 38.47%. Given General Electric’s higher possible upside, analysts plainly believe General Electric is more favorable than Siemens.
Risk & Volatility
Siemens has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, General Electric has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Siemens beats General Electric on 10 of the 16 factors compared between the two stocks.
Siemens AG is a Germany-based technology company with activities in the fields of electrification, automation and digitalization. It is also a supplier of systems for power generation and transmission, as well as medical diagnosis. It operates through nine segments: Power and Gas; Wind Power and Renewables; Energy Management; Building Technologies; Mobility; Digital Factory; Process Industries and Drives; Healthineers, and Financial Services. The Company’s product groups include automation, building technologies, drive technology, healthcare, mobility, energy, financing, consumer products and services. Its services include industry services, energy services, healthcare services, rail and road solutions services, logistics and airport solutions services, home appliances services, and building technologies services. Its market-specific solutions are focused on markets, such as aerospace, automotive, data centers, fiber industry, food and beverage, and machinery and plant construction.
About General Electric
General Electric Company operates as a digital industrial company worldwide. It operates through Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Lighting, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, engines, generators, and high voltage equipment; and power generation services and digital solutions. The Renewable Energy segment provides wind turbine platforms, and hardware and software; offshore wind turbines; solutions, products, and services to hydropower industry; and blades for onshore and offshore wind turbines. The Oil & Gas segment offers oilfield services, oilfield equipment, turbomachinery and process solutions, and digital solutions. The Aviation segment provides jet engines and turboprops; maintenance, component repair, and overhaul services, as well as replacement parts; and additive machines, materials, and engineering services. The Healthcare segment offers diagnostic imaging and clinical systems; products, services, and manufacturing solutions for drug discovery, the biopharmaceutical industry, and cellular and gene therapy technologies; and medical technologies, software, analytics, cloud solutions, and implementation and services. The Transportation segment provides freight and passenger locomotives, and rail and support advisory services; parts, integrated software solutions, and data analytics; software-enabled solutions; mining equipment and services; and marine diesel and stationary power diesel engines and motors, as well as overhaul, repair and upgrade, and wreck repair services. The Lighting segment offers light emitting diode products; and energy efficiency and productivity solutions. The Capital segment provides industrial and energy financial services; and commercial aircraft leasing, financing, and consulting services. General Electric Company was founded in 1892 and is headquartered in Boston, Massachusetts.
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