Financial Review: Konica Minolta (OTCMKTS:KNCAF) vs. ACCO Brands (NYSE:ACCO)

Konica Minolta (OTCMKTS:KNCAF) and ACCO Brands (NYSE:ACCO) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Konica Minolta and ACCO Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Konica Minolta	N/A	N/A	N/A
ACCO Brands	-1.45%	12.33%	3.54%

Earnings and Valuation

This table compares Konica Minolta and ACCO Brands’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Konica Minolta	N/A	N/A	N/A	$59.88	0.06
ACCO Brands	$1.88 billion	0.27	-$13.20 million	($0.30)	-18.10

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

Dividends

Konica Minolta pays an annual dividend of $13.93 per share and has a dividend yield of 421.0%. ACCO Brands pays an annual dividend of $0.30 per share and has a dividend yield of 5.5%. Konica Minolta pays out 23.3% of its earnings in the form of a dividend. ACCO Brands pays out -100.0% 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.

Analyst Ratings

This is a breakdown of current ratings for Konica Minolta and ACCO Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Konica Minolta	0	0	0	0	N/A
ACCO Brands	0	1	1	0	2.50

ACCO Brands has a consensus price target of $7.00, suggesting a potential upside of 28.91%. Given ACCO Brands’ higher probable upside, analysts plainly believe ACCO Brands is more favorable than Konica Minolta.

Insider & Institutional Ownership

24.7% of Konica Minolta shares are owned by institutional investors. Comparatively, 81.0% of ACCO Brands shares are owned by institutional investors. 7.3% of ACCO Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

ACCO Brands beats Konica Minolta on 8 of the 12 factors compared between the two stocks.

About Konica Minolta

Konica Minolta, Inc. engages in digital workplace, professional print, healthcare, and industrial businesses in Japan, China, other Asian countries, the United States, Europe, and internationally. It develops, manufactures, and sells multi-functional peripherals, digital printing systems, and related consumables, as well as offers IT and printing solutions and services. The company also provides diagnostic imaging systems, such as digital X-ray diagnostic imaging, diagnostic ultrasound systems, and other systems; digitalization, networking, solutions, and services in the medical field; genetic testing and drug discovery support services; and primary care services. In addition, it offers measuring instruments; functional film displays; organic light emitting diode lighting products; industrial inkjet printheads; lenses for industrial and professional use; and imaging IoT and visual solutions. The company was founded in 1873 and is headquartered in Tokyo, Japan.

About ACCO Brands

ACCO Brands Corporation designs, manufactures, and markets consumer, school, technology, and office products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company provides computer and gaming accessories, planners, dry erase boards, school notebooks, and janitorial supplies; storage and organization products, such as lever-arch binders, sheet protectors, and indexes; sheet protectors and indexes; laminating, binding, and shredding machines; writing instruments and art products; stapling and punching products; and do-it-yourself tools. It offers its products under the AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, PowerA, Quartet, Rapid, Rexel, Swingline, Tilibra, Artline, and Spirax brand names. The company markets and sells its products through various channels, including mass retailers, e-tailers, discount, drug/grocery, and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; wholesalers; contract stationers; and technology specialty businesses, as well as sells products directly to commercial and consumer end-users through its e-commerce platform and direct sales organization. ACCO Brands Corporation was founded in 1893 and is headquartered in Lake Zurich, Illinois.