Metso vs Sandvik Which Is Superior?

Metso and Sandvik are two heavyweight competitors in the industrial machinery and equipment sector, particularly in the mining and construction industries. Both companies are renowned for their high-quality products and strong global presence, making them popular choices for investors looking to capitalize on the growth in these sectors. While both companies have faced challenges in recent years, their stocks have shown resilience and potential for steady growth. This comparison will delve deeper into the financial performance and prospects of Metso and Sandvik stocks to help investors make informed decisions.

Metso or Sandvik?

When comparing Metso and Sandvik, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Metso and Sandvik.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Metso has a dividend yield of 4.04%, while Sandvik has a dividend yield of 1.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Metso reports a 5-year dividend growth of 0.00% year and a payout ratio of 88.64%. On the other hand, Sandvik reports a 5-year dividend growth of 9.41% year and a payout ratio of 56.36%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Metso P/E ratio at 25.04 and Sandvik's P/E ratio at 21.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Metso P/B ratio is 3.16 while Sandvik's P/B ratio is 2.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Metso has seen a 5-year revenue growth of -0.07%, while Sandvik's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Metso's ROE at 11.93% and Sandvik's ROE at 13.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €8.86 for Metso and $18.88 for Sandvik. Over the past year, Metso's prices ranged from €7.93 to €11.95, with a yearly change of 50.69%. Sandvik's prices fluctuated between $18.09 and $23.50, with a yearly change of 29.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.