Nikon (OTCMKTS: NINOY) and Bemis (NYSE:BMS) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Nikon pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Bemis pays an annual dividend of $1.24 per share and has a dividend yield of 2.8%. Nikon pays out 6.0% of its earnings in the form of a dividend. Bemis pays out 51.9% 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. Bemis has raised its dividend for 34 consecutive years. Bemis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Nikon has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Bemis has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Earnings and Valuation
This table compares Nikon and Bemis’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nikon||$6.93 billion||1.01||-$66.09 million||$1.16||14.98|
|Bemis||$4.05 billion||1.00||$94.00 million||$2.39||18.64|
Bemis has lower revenue, but higher earnings than Nikon. Nikon is trading at a lower price-to-earnings ratio than Bemis, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.2% of Nikon shares are held by institutional investors. Comparatively, 77.5% of Bemis shares are held by institutional investors. 1.1% of Bemis shares are held by company insiders. 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.
This table compares Nikon and Bemis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Nikon and Bemis, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bemis has a consensus price target of $47.91, indicating a potential upside of 7.52%. Given Bemis’ higher probable upside, analysts clearly believe Bemis is more favorable than Nikon.
Bemis beats Nikon on 13 of the 16 factors compared between the two stocks.
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.
Bemis Company, Inc. manufactures and sells packaging products in the United States, Brazil, other Americas, Europe, and the Asia-Pacific. It operates through three segments: U.S. Packaging, Latin America Packaging, and Rest of World Packaging. The company offers multilayer polymer, blown, and cast film structures; and injection molded plastic, thermoformed plastic, and folding carton packaging products. Its products are used to produce packaging for food, medical, pharmaceutical, personal care, electronics, and industrial applications. The company was formerly known as Bemis Bro. Bag Company and changed its name to Bemis Company, Inc. in 1965. Bemis Company, Inc. was founded in 1858 and is based in Neenah, Wisconsin.
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