Shimano (OTCMKTS:SMNNY) and Shin-Etsu Chemical (OTCMKTS:SHECY) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Shimano and Shin-Etsu Chemical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Shimano | 0 | 1 | 0 | 0 | 2.00 |
Shin-Etsu Chemical | 0 | 0 | 2 | 0 | 3.00 |
Valuation and Earnings
This table compares Shimano and Shin-Etsu Chemical's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Shimano | $3.33 billion | 6.73 | $476.87 million | N/A | N/A |
Shin-Etsu Chemical | $14.20 billion | 5.27 | $2.89 billion | $1.70 | 26.41 |
Shin-Etsu Chemical has higher revenue and earnings than Shimano.
Profitability
This table compares Shimano and Shin-Etsu Chemical's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Shimano | N/A | N/A | N/A |
Shin-Etsu Chemical | 19.72% | 10.75% | 9.14% |
Risk & Volatility
Shimano has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Shin-Etsu Chemical has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Institutional and Insider Ownership
0.2% of Shimano shares are held by institutional investors. Comparatively, 0.1% of Shin-Etsu Chemical shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Dividends
Shimano pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Shin-Etsu Chemical pays an annual dividend of $0.38 per share and has a dividend yield of 0.8%. Shin-Etsu Chemical pays out 22.4% of its earnings in the form of a dividend.
Summary
Shin-Etsu Chemical beats Shimano on 8 of the 13 factors compared between the two stocks.