Constellation Software (OTCMKTS:CNSWF – Get Free Report) and Andritz (OTCMKTS:ADRZY – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Constellation Software and Andritz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Constellation Software | 6.06% | 67.94% | 15.38% |
| Andritz | 5.90% | 23.10% | 6.10% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Constellation Software and Andritz, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Constellation Software | 0 | 0 | 0 | 1 | 4.00 |
| Andritz | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares Constellation Software and Andritz”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Constellation Software | $8.41 billion | N/A | $565.00 million | $27.68 | 114.77 |
| Andritz | $9.37 billion | 0.61 | $552.19 million | $1.09 | 10.17 |
Constellation Software has higher earnings, but lower revenue than Andritz. Andritz is trading at a lower price-to-earnings ratio than Constellation Software, indicating that it is currently the more affordable of the two stocks.
Dividends
Constellation Software pays an annual dividend of $4.00 per share and has a dividend yield of 0.1%. Andritz pays an annual dividend of $0.34 per share and has a dividend yield of 3.1%. Constellation Software pays out 14.5% of its earnings in the form of a dividend. Andritz pays out 31.2% 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.
Risk and Volatility
Constellation Software has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Andritz has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Summary
Constellation Software beats Andritz on 10 of the 12 factors compared between the two stocks.
About Constellation Software
Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.
About Andritz
Andritz AG provides plants, equipment, and services for pulp and paper industry, metalworking and steel industries, hydropower stations, and solid/liquid separation in the municipal and industrial sectors in Europe, North America, South America, China, Asia, and internationally. It operates through four segments: Pulp & Paper, Metals, Hydro, and Separation. The Pulp & Paper segment supplies technology, automation, and service solutions to produce pulp, paper, board, and tissue; boilers for power generation; flue gas cleaning systems; nonwovens technologies; panelboard production systems; and recycling, shredding, and energy solutions for various waste materials. The Metals segment provides technologies, plants, and digital solutions, including automation and software solutions, and process know-how and services; and solutions for the production and processing of flat products for welding systems and industrial furnaces, as well as services for the metals processing industry. The Hydro segment supplies electromechanical equipment and services for hydropower plants; offers plant diagnosis, refurbishment, modernization, and upgradation of existing hydropower plants; and pumps for irrigation, water supply, and flood control, as well as turbo generators. The Separation segment offers mechanical and thermal technologies, as well as services and related automation solutions for solid/liquid separation to serve chemical, environmental, food, mining, and minerals industries; and technologies and services to produce animal feed and biomass pellets. The company was founded in 1852 and is headquartered in Graz, Austria.
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