Kuehne + Nagel International (OTCMKTS:KHNGY) vs. Iberdrola (OTCMKTS:IBDRY) Critical Contrast

Iberdrola (OTCMKTS:IBDRY) and Kuehne + Nagel International (OTCMKTS:KHNGY) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Profitability

This table compares Iberdrola and Kuehne + Nagel International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iberdrola	14.67%	10.67%	4.34%
Kuehne + Nagel International	4.83%	37.72%	10.11%

Institutional and Insider Ownership

0.0% of Iberdrola shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Iberdrola and Kuehne + Nagel International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	0	3	0	0	2.00
Kuehne + Nagel International	1	2	0	0	1.67

Dividends

Iberdrola pays an annual dividend of $1.43 per share and has a dividend yield of 2.4%. Kuehne + Nagel International pays an annual dividend of $1.13 per share and has a dividend yield of 2.3%. Iberdrola pays out 32.7% of its earnings in the form of a dividend. Kuehne + Nagel International pays out 51.6% 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. Iberdrola is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Iberdrola and Kuehne + Nagel International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$53.39 billion	1.77	$5.20 billion	$4.37	13.42
Kuehne + Nagel International	$26.55 billion	1.10	$1.59 billion	$2.19	22.15

Iberdrola has higher revenue and earnings than Kuehne + Nagel International. Iberdrola is trading at a lower price-to-earnings ratio than Kuehne + Nagel International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Iberdrola has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Kuehne + Nagel International has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Iberdrola beats Kuehne + Nagel International on 9 of the 13 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Kuehne + Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.