Investors can gauge how much earnings per share a company generates from every Qatari Riyal they
invested from a financial metric called Earning Yield.
Using the Earning Yield is very common to assess if a particular stock is underpriced or overpriced.
The higher the Earning Yield, the more undervalued a stock is considered to be.
More specifically, when you see two companies in the same sector with nearly identical capital structure
and growth opportunities, the company with a higher Earning Yield possesses better value than the
other.
Right now, Mannai Corporation (MCCS) – a company with diverse activities from heavy equipment to oil
and gas – has the highest Earning Yield in Qatar, at 16.8%.
This makes MCCS a potentially good investment, also considering that it is trading at 6.2x P/E.
Besides MCCS, the other Qatari stocks with the highest Earning Yield are Doha Bank (DHBK) at 12.9%,
Qatar Industrial Manufacturing (QIMD) at 12.3%, Industries Qatar (IQCD) and QFC (QFBQ), both at
12.0%.