THK (OTCMKTS:THKLY) and Rakuten (OTCMKTS:RKUNY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Profitability
This table compares THK and Rakuten's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| THK | -0.51% | -0.39% | -0.23% |
| Rakuten | -6.39% | -12.67% | -0.89% |
Analyst Ratings
This is a summary of recent ratings for THK and Rakuten, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| THK | 0 | 1 | 0 | 1 | 3.00 |
| Rakuten | 0 | 1 | 0 | 0 | 2.00 |
Volatility and Risk
THK has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Rakuten has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
0.3% of THK shares are held by institutional investors. Comparatively, 0.1% of Rakuten 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.
Earnings & Valuation
This table compares THK and Rakuten's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| THK | $2.52 billion | 1.96 | $107.57 million | $0.42 | 43.81 |
| Rakuten | $11.60 billion | 1.72 | $-293,370,000.00 | ($0.22) | -57.50 |
THK has higher earnings, but lower revenue than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than THK, indicating that it is currently the more affordable of the two stocks.
Dividends
THK pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Rakuten pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. THK pays out 11.9% of its earnings in the form of a dividend. Rakuten pays out -13.6% 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.
Summary
THK beats Rakuten on 11 of the 14 factors compared between the two stocks.
