1Wk·

Siemens vs GE

I have been focusing my portfolio for weeks now. So the question arose: what will be the result? Of course, the companies that overlap have to go first. Now the problem arises as to which share is better. With $GEHC (+0.6%) vs. $SHL (+0.44%) After much deliberation, I opted for $SHL (+0.44%) after much deliberation. Now only $GEV (+1.13%) vs. $ENR (+2.2%) . Here the decision is just as difficult for me. One is cheaper than the other, the other is fundamentally better and... Both have pros and cons, so I'm wondering if any of you have any ideas.

6 Comments

Soprano@Soprano

1Wk

Incidentally, I would also be on the General Electric team at GEHC. I also don't like the complete lack of growth at Healthineers. Apart from that, even GEHC is a perpetual watchlist stock for me, which I have only been following for a long time because I keep finding more interesting business models in the healthcare sector.

I listened to this podcast episode by chance last year and the question was also discussed there: https://www.podcast.de/episode/628476544/general-electric-spaltet-sich-auf-wo-lohnt-es-sich-zu-investieren

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ThemenmitKopf@topicswithhead

1Wk

@Soprano Where is the growth missing at Healthineers? In the share price yes, but the turnover is growing. Yes, I actually wanted to keep GEHC but someone had to go. Maybe the share will somehow come back in. However, their portfolio is worse. They are also well affected by the tariffs. Apart from that, why aren't you investing in them? Thought you had liquid funds. I also chose Siemens because I'm more in favor of GE Vernova among the others. However, they also have a few problems. Fundamentally stronger but their wind business will die 100% under Trump. In addition, Siemens is growing faster and has better FCF

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Soprano@Soprano

1Wk

@topicswithhead Well, the growth is somehow missing. Sales growth is all well and good, but the bottom line is that with 5y EPS growth of 3.6%, that's not enough to compensate for inflation, if at all.

Of course I have liquid funds, but there are already plenty of healthcare stocks in my portfolio that I can buy. And if I were looking for a new share now, I would still prefer several candidates.

Yes, I definitely understand and agree with you there

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ThemenmitKopf@topicswithhead

1Wk

@Soprano
The diluted EPS growth is 3.9% CAGR, but that doesn't make things any better. On the other hand, FCF at 12 is better than GHC and grew by 5.7%. Overall, this makes me uncertain now, but somehow I was missing something. First of all, I believe that in China and Canada there is now more focus on Siemens. Not only because of the sentiment, but also because the product is now much better. Of course, GEHC is fundamentally better everywhere, more favorably valued and, above all, much more flexible now after the spin-off (spin-off advantages, as I said). It is difficult for me, and in addition, the sell-off of shares by Siemens will now hold the stock in place, as an oversupply is coming onto the market. The share itself has also performed worse.

Uff, I find that more difficult than with the other two. The decision is not easy, but fundamentally Verova has been much better than Siemens Energy. Nevertheless, Siemens has a wind business, but it is loss-making and will probably only break even in the long term. AI also plays an important role, and the problem, but also an advantage, could be that unfortunately or fortunately this is done via the Siemens AG Xelerator Platform. Whether this is good or bad remains to be seen, but that's why I'm out of Siemens for now. There are also others in Europe, such as Rolls-Royce, that can manufacture turbines. It's the same with Healthineers. But somehow it doesn't bother me that the AI platform is being built on Siemens. Mine, if everyone invests well, is of course an incredible advantage, but who says it will always stay that way.

In addition, I also believe that the euro exchange rate or, conversely, the US dollar has peaked from here. This means that, as is already being felt, currency losses are having a massive impact. That's why we're getting shares at a lower price now.

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Soprano@Soprano

1Wk

@topicswithhead As you say, it's quite difficult. Both companies have their advantages and disadvantages. For me, it's also more a personal preference for the Americans and not that the company performs better in all areas.

I wouldn't shout about whether we have already reached the peak of the exchange rate differences. I'm still really unsure whether it could go any further, which is why I'm holding so much cash in order to be able to act. I know that, statistically speaking, being outside the market with a lot of cash always has a disadvantage in terms of returns, but I also have to manage my risk somehow and as I don't have any alternative asset classes, I also have to hedge myself.

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ThemenmitKopf@topicswithhead

1Wk

@Soprano By peak I meant that the USA will not get back above the 50% currency share in the long term. That doesn't mean that it won't go any lower.

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