Daikin Industries,Ltd. (OTCMKTS:DKILY) and L'Oréal (OTCMKTS:LRLCY) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Dividends
Daikin Industries,Ltd. pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. L'Oréal pays an annual dividend of $0.68 per share and has a dividend yield of 0.8%. Daikin Industries,Ltd. pays out 18.5% of its earnings in the form of a dividend. L'Oréal pays out 54.4% 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.
Valuation & Earnings
This table compares Daikin Industries,Ltd. and L'Oréal's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Daikin Industries,Ltd. | $23.46 billion | 2.51 | $1.57 billion | $0.54 | 37.22 |
L'Oréal | $33.46 billion | 6.81 | $4.20 billion | $1.25 | 65.23 |
L'Oréal has higher revenue and earnings than Daikin Industries,Ltd.. Daikin Industries,Ltd. is trading at a lower price-to-earnings ratio than L'Oréal, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Daikin Industries,Ltd. and L'Oréal's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Daikin Industries,Ltd. | N/A | N/A | N/A |
L'Oréal | N/A | N/A | N/A |
Insider and Institutional Ownership
0.1% of Daikin Industries,Ltd. shares are held by institutional investors. Comparatively, 0.7% of L'Oréal shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Daikin Industries,Ltd. has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, L'Oréal has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Daikin Industries,Ltd. and L'Oréal, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Daikin Industries,Ltd. | 0 | 0 | 1 | 0 | 3.00 |
L'Oréal | 2 | 3 | 7 | 1 | 2.54 |
L'Oréal has a consensus target price of $76.00, indicating a potential downside of 6.79%. Given L'Oréal's higher possible upside, analysts clearly believe L'Oréal is more favorable than Daikin Industries,Ltd..
Summary
L'Oréal beats Daikin Industries,Ltd. on 10 of the 13 factors compared between the two stocks.