Comparing DENSO (OTCMKTS:DNZOY) and Shimano (OTCMKTS:SMNNY)

Insider & Institutional Ownership

0.0% of Shimano shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Shimano and DENSO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	16.84%	9.02%	8.31%
DENSO	6.37%	8.06%	5.16%

Dividends

Shimano pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. DENSO pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Shimano pays out 23.2% of its earnings in the form of a dividend. DENSO pays out 23.5% 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.

Risk & Volatility

Shimano has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, DENSO has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares Shimano and DENSO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$2.98 billion	4.02	$504.84 million	$0.56	24.05
DENSO	$49.49 billion	0.74	$2.16 billion	$1.02	12.39

DENSO has higher revenue and earnings than Shimano. DENSO is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.

Summary

Shimano beats DENSO on 7 of the 12 factors compared between the two stocks.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About DENSO

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.