Nokian Renkaat Oyj (OTCMKTS:NKRKF) & Iochpe-Maxion (OTCMKTS:IOCJY) Critical Survey

Nokian Renkaat Oyj (OTCMKTS:NKRKF) and Iochpe-Maxion (OTCMKTS:IOCJY) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings for Nokian Renkaat Oyj and Iochpe-Maxion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokian Renkaat Oyj	0	0	1	0	3.00
Iochpe-Maxion	0	1	0	0	2.00

Valuation and Earnings

This table compares Nokian Renkaat Oyj and Iochpe-Maxion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.89	19.51
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.04	13.53

Iochpe-Maxion has higher revenue and earnings than Nokian Renkaat Oyj. Iochpe-Maxion is trading at a lower price-to-earnings ratio than Nokian Renkaat Oyj, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nokian Renkaat Oyj and Iochpe-Maxion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nokian Renkaat Oyj	N/A	N/A	N/A
Iochpe-Maxion	0.63%	2.08%	0.68%

Institutional and Insider Ownership

34.8% of Nokian Renkaat Oyj shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Nokian Renkaat Oyj pays an annual dividend of $1.45 per share and has a dividend yield of 8.3%. Iochpe-Maxion pays an annual dividend of $0.01 per share and has a dividend yield of 1.8%. Nokian Renkaat Oyj pays out 162.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Iochpe-Maxion pays out 25.0% of its earnings in the form of a dividend.

Summary

Nokian Renkaat Oyj beats Iochpe-Maxion on 6 of the 11 factors compared between the two stocks.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.