Analyzing ONEX (OTCMKTS:ONEXF) and SCHNEIDER ELEC /ADR (OTCMKTS:SBGSY)

ONEX (OTCMKTS:ONEXF) and SCHNEIDER ELEC /ADR (OTCMKTS:SBGSY) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ONEX and SCHNEIDER ELEC /ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ONEX 0 0 1 0 3.00
SCHNEIDER ELEC /ADR 0 1 2 0 2.67

Volatility and Risk

ONEX has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, SCHNEIDER ELEC /ADR has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Dividends

ONEX pays an annual dividend of $0.31 per share and has a dividend yield of 0.9%. SCHNEIDER ELEC /ADR pays an annual dividend of $0.39 per share and has a dividend yield of 2.2%. SCHNEIDER ELEC /ADR pays out 33.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares ONEX and SCHNEIDER ELEC /ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ONEX $1.11 billion 3.08 $4.28 billion N/A N/A
SCHNEIDER ELEC /ADR $30.07 billion 1.74 $2.67 billion $1.18 15.31

ONEX has higher earnings, but lower revenue than SCHNEIDER ELEC /ADR.

Institutional and Insider Ownership

0.7% of ONEX shares are owned by institutional investors. Comparatively, 0.5% of SCHNEIDER ELEC /ADR shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ONEX and SCHNEIDER ELEC /ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ONEX 389.88% 10.96% 6.62%
SCHNEIDER ELEC /ADR N/A N/A N/A

Summary

ONEX beats SCHNEIDER ELEC /ADR on 8 of the 13 factors compared between the two stocks.

ONEX Company Profile

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; and London, United Kingdom.

SCHNEIDER ELEC /ADR Company Profile

Schneider Electric SE provides energy management and automation solutions worldwide. It operates through four businesses: Low Voltage, Medium Voltage, Secure Power, and Industrial Automation. The Low Voltage business provides low voltage power and building automation products and solutions that address the needs of various end markets from buildings to industries and infrastructure to data centers. The Medium Voltage business offers medium voltage distribution and grid automation solutions. The Secure Power business offers secure power services. The Industrial Automation business provides automation and control solutions. The company has a strategic partnership with Alderon Iron Ore Corp. to develop kami iron ore project. Schneider Electric SE was founded in 1836 and is headquartered in Rueil-Malmaison, France.

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