Critical Comparison: Sharp (OTCMKTS:SHCAY) & Legrand (OTCMKTS:LGRVF)

Sharp (OTCMKTS:SHCAY) and Legrand (OTCMKTS:LGRVF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

Sharp pays an annual dividend of $0.06 per share and has a dividend yield of 2.1%. Legrand does not pay a dividend. Sharp pays out 28.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Sharp and Legrand, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sharp 0 1 1 0 2.50
Legrand 1 2 0 0 1.67

Institutional & Insider Ownership

0.1% of Sharp shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sharp has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Legrand has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Sharp and Legrand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sharp 2.83% -159.01% -30.34%
Legrand 12.91% 17.04% 7.64%

Valuation & Earnings

This table compares Sharp and Legrand’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sharp $21.80 billion 0.28 $668.03 million $0.21 13.47
Legrand $7.08 billion 2.65 $911.38 million $3.39 20.68

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

Summary

Legrand beats Sharp on 8 of the 14 factors compared between the two stocks.

Sharp Company Profile

Sharp Corporation manufactures and distributes electronic communication equipment, electronic equipment, electronic application equipment, and electronic components in Japan, the Americas, Europe, China, and internationally. It operates through four segments: Smart Homes, Smart Business Solutions, Internet of Things (IoT) Electronics Devices, and Advance Display Systems. The Smart Homes segment offers mobile phones, electronic dictionaries, calculators, facsimiles, telephones, network control units, refrigerators, superheated steam ovens, microwave ovens, small cooking appliances, air conditioners, washing machines, vacuum cleaners, air purifiers, electric fans, dehumidifiers, humidifiers, electric heaters, plasma cluster ion generators, beauty appliances, solar cells, and storage batteries. The Smart Business Solutions segment provides POS systems, electronic cash registers, commercial projectors, information displays, digital multi-function printers, options and consumables, software, FA equipment, and ultrasonic sensors. The IoT Electronics Devices segment offers camera modules, camera modules production facilities, sensor modules, proximity sensors, dust sensors, CCD/CMOS sensors, laser diodes, and automotive cameras. The Advance Display Systems segment provides LCD color televisions, Blu-ray disc recorders, IGZO LCD modules, CG-silicon LCD modules, and amorphous silicon LCD modules. The company was formerly known as Hayakawa Electric Industry Co., Ltd. and changed its name to Sharp Corporation in January 1970. Sharp Corporation was founded in 1912 and is headquartered in Sakai, Japan.

Legrand Company Profile

Legrand SA, together with its subsidiaries, provides electrical and digital building infrastructures worldwide. The company offers a range of products and solutions that connect buildings to energy, data, and lighting, such as switches, power sockets, distribution panels, circuit breakers, lighting management products, security systems, trunkings, floor boxes, enclosures, sockets, screen mounts, uninterruptible power supply devices, tubes, ducts, extensions, and others. Its products are used in hotels, offices, data centers, and shopping centers, as well as residential, healthcare, and industrial sectors. The company was founded in 1865 and is headquartered in Limoges, France.

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