Rakuten (OTCMKTS:RKUNY) and Nippon Paint (OTCMKTS:NPCPF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Volatility & Risk
Rakuten has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Nippon Paint has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Rakuten and Nippon Paint's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Rakuten | $11.60 billion | 1.66 | $-293,370,000.00 | ($0.22) | -55.45 |
Nippon Paint | $6.35 billion | 0.79 | $337.80 million | $1.05 | 14.86 |
Nippon Paint has lower revenue, but higher earnings than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Nippon Paint, indicating that it is currently the more affordable of the two stocks.
Dividends
Rakuten pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. Nippon Paint pays an annual dividend of $4.40 per share and has a dividend yield of 28.2%. Rakuten pays out -13.6% of its earnings in the form of a dividend. Nippon Paint pays out 419.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Rakuten and Nippon Paint, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Rakuten | 0 | 1 | 0 | 0 | 2.00 |
Nippon Paint | 0 | 0 | 0 | 0 | N/A |
Insider and Institutional Ownership
0.1% of Rakuten shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Rakuten and Nippon Paint's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Rakuten | -6.39% | -12.67% | -0.89% |
Nippon Paint | 4.71% | 5.36% | 2.46% |
Summary
Nippon Paint beats Rakuten on 8 of the 12 factors compared between the two stocks.