MonotaRO (OTCMKTS:MONOY) versus Daiwa Securities Group (OTCMKTS:DSEEY) Head-To-Head Analysis

Daiwa Securities Group (OTCMKTS:DSEEY) and MonotaRO (OTCMKTS:MONOY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Daiwa Securities Group and MonotaRO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daiwa Securities Group	0	0	0	0	N/A
MonotaRO	0	0	0	0	N/A

Profitability

This table compares Daiwa Securities Group and MonotaRO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daiwa Securities Group	9.07%	6.56%	0.35%
MonotaRO	8.70%	27.44%	18.96%

Dividends

Daiwa Securities Group pays an annual dividend of $0.28 per share and has a dividend yield of 3.9%. MonotaRO pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Daiwa Securities Group pays out 48.3% of its earnings in the form of a dividend. MonotaRO pays out 22.6% 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.

Volatility and Risk

Daiwa Securities Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, MonotaRO has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Daiwa Securities Group and MonotaRO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daiwa Securities Group	$8.85 billion	1.27	$838.75 million	$0.58	12.30
MonotaRO	$1.81 billion	4.60	$154.87 million	$0.31	53.63

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

Summary

MonotaRO beats Daiwa Securities Group on 7 of the 12 factors compared between the two stocks.

About Daiwa Securities Group

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset Management, and Investment. The Retail segment offers products and services related to asset management, including equities, bonds, investment trusts, wrap account services, insurance, banking services, inheritance-related services, etc. for individual investors and unlisted companies. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment invests in monetary claims, loans, private equities, and real estate properties, as well as energy, infrastructure, and resource sectors. The company also offers research and consulting, and information services, as well as engages in the office work activities. In addition, it is involved in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.

About MonotaRO

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. It offers products in various categories, such as safety protection equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety supplies/safety signs; office supplies; office furniture/lighting/cleaning supplies; cutting tools/abrasives; measurement/surveying supplies; work/electric/pneumatic tools; spray/oil/grease/paint/adhesion/repair/welding supplies; and agricultural materials/gardening supplies. The company also provides building hardware products, building materials, and painting interior supplies; air conditioning/electrical equipment materials/electrical materials; piping/water supply/pump/pneumatic/hydraulic equipment/hose products; mechanical parts; control equipment/solder/static electricity countermeasure supplies; screws/bolts/nails/materials; car/truck supplies; motorcycle/bicycle supplies; kitchen equipment/kitchen products/store supplies; scientific research and development/clean room supplies; and medical/long-term care products. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in 2006. MonotaRO Co., Ltd. was founded in 2000 and is headquartered in Amagasaki, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.