Risk and Volatility
One of the ways to measure the risk and volatility of a stock is by looking at its beta. A beta of 1 indicates that a stock will move with the market, while a beta of less than 1 suggests that the stock is less volatile than the market, and a beta of more than 1 implies that the stock is more volatile than the market.
Sino Biopharmaceutical has a beta of 0.76, which suggests that its share price is less volatile than the market. This means that while the company's stock price may not rise significantly, it is also less likely to drop significantly. On the other hand, ANDRITZ AG/ADR has a beta of 1.43, implying that the stock is more volatile than the market. This suggests that investors who are looking for a high-risk, high-reward investment may consider investing in ANDRITZ AG/ADR, while those who are risk-averse may consider Sino Biopharmaceutical.
Analyst Recommendations
The next factor to consider when comparing these two companies is the strength of their analyst recommendations. Analyst recommendations give investors insight into how experts perceive the company's potential and the current state of the stock.
Sino Biopharmaceutical has an average rating of "buy" from six analysts, suggesting that the company is a good investment for those looking to invest in the medical sector. ANDRITZ AG/ADR, on the other hand, has an average rating of "hold" from four analysts, implying that investors might want to hold off on making an investment in the company until more information becomes available.
Institutional Ownership
Institutional ownership refers to the percentage of a company that is owned by investment institutions, such as mutual funds and pension funds. Companies with a high percentage of institutional ownership are generally considered to be more stable and less volatile than those with a low percentage of institutional ownership.
Sino Biopharmaceutical has a high percentage of institutional ownership at 18.38%, while ANDRITZ AG/ADR has a lower percentage of institutional ownership at 0.11%. This indicates that Sino Biopharmaceutical is more stable than ANDRITZ AG/ADR.
Dividends
Another important factor to consider when comparing these two companies is their ability to pay dividends. A dividend is a payment made to shareholders out of a company's profits. Companies that pay dividends are generally considered to be more stable and less risky than those that do not.
Sino Biopharmaceutical does not pay a dividend, while ANDRITZ AG/ADR pays a dividend of 1.12%. This means that investors who are looking for a safe, steady income stream may consider investing in ANDRITZ AG/ADR.
Profitability and Earnings
Profitability and earnings are two key metrics that investors use to evaluate the financial health of a company. Companies with high profitability and earnings are considered to be more stable and less risky than those with low profitability and earnings.
Sino Biopharmaceutical has a net income margin of 24.59%, while ANDRITZ AG/ADR has a net income margin of 4.62%. This suggests that Sino Biopharmaceutical is more profitable than ANDRITZ AG/ADR.
Valuation
Finally, we will consider the valuation of these two companies. Valuation refers to the price that investors are willing to pay for a company's stock relative to its earnings, revenue, or other key metrics.
Sino Biopharmaceutical has a forward P/E ratio of 16.03, which indicates that the company is undervalued compared to its earnings potential. ANDRITZ AG/ADR's forward P/E ratio is 15.94, similar to that of Sino Biopharmaceutical. However, it is important to note that P/E ratio is not the only metric to use when evaluating a company's valuation.
Conclusion
In conclusion, both Sino Biopharmaceutical and ANDRITZ AG/ADR are medical companies with different strengths and weaknesses. Sino Biopharmaceutical is less risky, more profitable, and undervalued compared to ANDRITZ AG/ADR. ANDRITZ AG/ADR pays a dividend and may be a better option for investors looking for a steady income stream. Ultimately, the choice between Sino Biopharmaceutical and ANDRITZ AG/ADR depends on the investor's financial goals, risk tolerance, and investment strategy.