Head-To-Head Review: Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) versus KDDI (OTCMKTS:KDDIY)

Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYYGet Rating) and KDDI (OTCMKTS:KDDIYGet Rating) are both large-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nippon Yusen Kabushiki Kaisha and KDDI, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nippon Yusen Kabushiki Kaisha 1 1 1 0 2.00
KDDI 0 4 0 0 2.00

Earnings and Valuation

This table compares Nippon Yusen Kabushiki Kaisha and KDDI’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nippon Yusen Kabushiki Kaisha $15.17 billion 0.74 $1.26 billion $8.33 1.58
KDDI $48.52 billion 1.58 $5.99 billion $1.35 12.32

KDDI has higher revenue and earnings than Nippon Yusen Kabushiki Kaisha. Nippon Yusen Kabushiki Kaisha is trading at a lower price-to-earnings ratio than KDDI, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of Nippon Yusen Kabushiki Kaisha shares are held by institutional investors. Comparatively, 0.1% of KDDI shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and KDDI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nippon Yusen Kabushiki Kaisha 36.20% 75.97% 31.15%
KDDI 12.41% 12.53% 6.32%

Risk and Volatility

Nippon Yusen Kabushiki Kaisha has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, KDDI has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500.

Dividends

Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. KDDI pays an annual dividend of $0.19 per share and has a dividend yield of 1.1%. Nippon Yusen Kabushiki Kaisha pays out 3.4% of its earnings in the form of a dividend. KDDI pays out 14.1% 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. Nippon Yusen Kabushiki Kaisha is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Nippon Yusen Kabushiki Kaisha beats KDDI on 8 of the 13 factors compared between the two stocks.

About Nippon Yusen Kabushiki Kaisha (Get Rating)

Nippon Yusen Kabushiki Kaisha provides marine, land, and air transportation services worldwide. The company offers various logistics services, including liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, which include iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, LNG, LPG, and ammonia for oil, petrochemical, and energy companies. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

About KDDI (Get Rating)

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers smartphone, mobile phone, and other mobile communication services, as well as fixed-line services under the au Hikari brand; MVNO services; mobile services under the au brand; and voice communications, data transmission, FTTH services, and CATV services. It also provides smartphone-centric payment, financial, and other services through au PAY gateway; au HOME, an IoT service that watches over pets using sensors and cameras; au Denki to conserve energy usage; AEON, an English conversation school. The Business Services segment offers data center services to corporate customers under the TELEHOUSE brand; and various solutions for network and cloud services, smartphones, and other devices. It is also involved in the provision of broadcasting, wireless broadband, mail order, IT support, call center, and temporary personnel services; and design, construction, maintenance, and operation support for communication equipment and submarine cable. The company was founded in 1953 and is headquartered in Tokyo, Japan.

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