Swire Pacific (OTCMKTS:SWRAY) and Nissan Chemical (OTCMKTS:NNCHY) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Earnings and Valuation
This table compares Swire Pacific and Nissan Chemical's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Swire Pacific | $10.93 billion | 2.84 | $1.15 billion | $2.51 | 3.18 |
Nissan Chemical | $1.90 billion | 4.37 | $283.18 million | $1.87 | 30.65 |
Swire Pacific has higher revenue and earnings than Nissan Chemical. Swire Pacific is trading at a lower price-to-earnings ratio than Nissan Chemical, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.1% of Swire Pacific shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Swire Pacific pays an annual dividend of $0.23 per share and has a dividend yield of 2.9%. Nissan Chemical pays an annual dividend of $0.65 per share and has a dividend yield of 1.1%. Swire Pacific pays out 9.2% of its earnings in the form of a dividend. Nissan Chemical pays out 34.8% 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. Swire Pacific is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of current ratings and target prices for Swire Pacific and Nissan Chemical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Swire Pacific | 0 | 0 | 0 | 0 | N/A |
Nissan Chemical | 0 | 1 | 1 | 0 | 2.50 |
Profitability
This table compares Swire Pacific and Nissan Chemical's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Swire Pacific | N/A | N/A | N/A |
Nissan Chemical | 14.72% | 15.49% | 12.17% |
Volatility & Risk
Swire Pacific has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Nissan Chemical has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Summary
Swire Pacific beats Nissan Chemical on 7 of the 13 factors compared between the two stocks.