EssilorLuxottica Société anonyme (OTCMKTS:ESLOY) and Eisai (OTCMKTS:ESALY) are both large-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Profitability
This table compares EssilorLuxottica Société anonyme and Eisai's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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EssilorLuxottica Société anonyme | N/A | N/A | N/A |
Eisai | 16.86% | 17.44% | 11.48% |
Risk & Volatility
EssilorLuxottica Société anonyme has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Eisai has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
Dividends
EssilorLuxottica Société anonyme pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. Eisai pays an annual dividend of $1.30 per share and has a dividend yield of 2.0%. EssilorLuxottica Société anonyme pays out 22.0% of its earnings in the form of a dividend. Eisai pays out 33.2% 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.
Earnings & Valuation
This table compares EssilorLuxottica Société anonyme and Eisai's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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EssilorLuxottica Société anonyme | $19.48 billion | 3.72 | $1.21 billion | $2.46 | 33.56 |
Eisai | $6.40 billion | 3.07 | $1.12 billion | $3.91 | 16.95 |
EssilorLuxottica Société anonyme has higher revenue and earnings than Eisai. Eisai is trading at a lower price-to-earnings ratio than EssilorLuxottica Société anonyme, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.3% of EssilorLuxottica Société anonyme shares are held by institutional investors. Comparatively, 0.1% of Eisai shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for EssilorLuxottica Société anonyme and Eisai, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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EssilorLuxottica Société anonyme | 1 | 4 | 5 | 0 | 2.40 |
Eisai | 0 | 0 | 1 | 0 | 3.00 |
Summary
EssilorLuxottica Société anonyme beats Eisai on 8 of the 14 factors compared between the two stocks.