Financial Review: DNOW (NYSE:DNOW) versus KHD Humboldt Wedag International (OTCMKTS:KHDHF)

DNOW (NYSE:DNOW) and KHD Humboldt Wedag International (OTCMKTS:KHDHF) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

97.6% of DNOW shares are owned by institutional investors. Comparatively, 1.0% of KHD Humboldt Wedag International shares are owned by institutional investors. 2.6% of DNOW shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares DNOW and KHD Humboldt Wedag International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.34 billion	0.54	$247.00 million	$2.17	5.44
KHD Humboldt Wedag International	N/A	N/A	N/A	($0.05)	-25.44

DNOW has higher revenue and earnings than KHD Humboldt Wedag International. KHD Humboldt Wedag International is trading at a lower price-to-earnings ratio than DNOW, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DNOW and KHD Humboldt Wedag International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	9.70%	9.93%	6.80%
KHD Humboldt Wedag International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for DNOW and KHD Humboldt Wedag International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	1	1	0	2.50
KHD Humboldt Wedag International	0	0	0	0	N/A

DNOW currently has a consensus target price of $15.50, suggesting a potential upside of 31.36%. Given DNOW’s higher probable upside, equities analysts plainly believe DNOW is more favorable than KHD Humboldt Wedag International.

Summary

DNOW beats KHD Humboldt Wedag International on 10 of the 10 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About KHD Humboldt Wedag International

KHD Humboldt Wedag International AG provides engineering products and services for the cement industry. It operates through Capex and Plant Services segments. The Capex segment offers process technology, design, engineering, project management, and the supply of technical equipment including grinding, pyro process, and system automation; and organizes training for cement plant personnel through e-learning program SIMULEX. This segment also provides equipment for grinding, which includes crushing, grinding, and separation equipment, as well as fans; pyro processing, including preheaters, calciner systems, burners, process fans, rotary kilns, and clinker coolers; PYROREDOX, a gasification reactor for reducing emissions; and PYROROTOR, a combustion chamber. The Plant Services segment supplies spare and wear parts; and offers various plant services, including maintenance services comprising refurbishing roller presses, technical inspections and audits, and consulting and assistance services. The company offers Rolcox, a roller press monitoring and control system; Romix-C, an automatic raw meal control system; Scanex-IC, a kiln temperature monitoring solution; and KHD ProMax, a suite of cloud based digital solutions that connects to and delivers real world optimization for cement plant equipment and processes. It operates in India, North America, rest of Asia, China, the Middle East, rest of Europe, Russia, China, South America, Germany, Africa, and internationally. The company was founded in 1856 and is headquartered in Cologne, Germany. KHD Humboldt Wedag International AG is a subsidiary of AVIC International Engineering Holdings Pte. Ltd.