Sappi (OTCMKTS: SPPJY) and Nikon (OTCMKTS:NINOY) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Volatility & Risk
Sappi has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Nikon has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Sappi pays an annual dividend of $0.14 per share and has a dividend yield of 2.3%. Nikon pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Sappi pays out 21.9% of its earnings in the form of a dividend. Nikon pays out 6.0% 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.
Earnings and Valuation
This table compares Sappi and Nikon’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sappi||$5.30 billion||0.63||$338.00 million||$0.64||9.72|
|Nikon||$6.93 billion||1.02||-$66.09 million||$1.16||15.19|
Sappi has higher earnings, but lower revenue than Nikon. Sappi is trading at a lower price-to-earnings ratio than Nikon, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Sappi and Nikon, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Sappi and Nikon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
0.0% of Sappi shares are held by institutional investors. Comparatively, 0.2% of Nikon shares are held by institutional investors. 0.7% of Sappi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Sappi beats Nikon on 7 of the 13 factors compared between the two stocks.
Sappi Limited is a woodfiber company focused on providing graphic/printing papers, packaging and specialty papers, dissolving wood pulp (DWP), as well as products in adjacent fields, including nanocellulose and lignosulfonate. The Company’s segments include North America, Europe and Southern Africa. Its range of graphic paper products is used by printers in the production of books, brochures, magazines, catalogues, direct mail and various other print applications; packaging and specialty papers are used in the manufacture of such products as soup sachets, carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, tissue wadding for household tissue products and casting release papers used by suppliers to the fashion, textiles, automobile and household industries, and DWP products are used around the world by converters to create viscose fiber for clothing and textiles, pharmaceutical products, as well as a range of consumer and household products.
Nikon Corporation manufactures and sells optical instruments in Japan and internationally. It operates through Imaging Products Business, Precision Equipment Business, Healthcare Business, and Industrial Metrology and Others segments. The Imaging Products Business segment develops, manufacture, sells and service of digital cameras?interchangeable lens type, interchangeable lenses and compact digital cameras, and other products. The Precision Equipment Business segment develops, manufacture, sells and service of FPD lithography systems for the production of LCD and organic light-emitting diode (OLED) panels; and semiconductor lithography systems for the production of semiconductors used primarily in electronics. The Healthcare Business segment develops, manufactures, sells, and services biological microscopes, cell culture observation systems, ultra-wide field retinal imaging devices, etc.; and engages in the regenerative medicine contract manufacturing business. The Industrial Metrology and Others segment develops, manufactures, sells, and services industrial microscopes, metrology systems, and X-ray/CT inspection systems. This segment is also involved in the customized products, glass, encoders, and ophthalmic lenses businesses, as well as sale of photomask substrates for FPD and optical components. Nikon Corporation has a strategic alliance with Verily Life Sciences LLC in the field of machine learning-enabled retinal imaging. The company was formerly known as Nippon Kogaku K.K. and changed its name to Nikon Corporation in 1988. Nikon Corporation was founded in 1917 and is headquartered in Tokyo, Japan.
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