Kawasaki Heavy Industries (OTCMKTS:KWHIY) & Secom (OTCMKTS:SOMLY) Financial Review

Kawasaki Heavy Industries (OTCMKTS:KWHIYGet Free Report) and Secom (OTCMKTS:SOMLYGet Free Report) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares Kawasaki Heavy Industries and Secom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kawasaki Heavy Industries -0.57% -1.71% -0.40%
Secom 8.79% 7.57% 5.07%

Risk & Volatility

Kawasaki Heavy Industries has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Secom has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kawasaki Heavy Industries and Secom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kawasaki Heavy Industries 0 0 0 0 N/A
Secom 0 0 0 0 N/A

Dividends

Kawasaki Heavy Industries pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. Secom pays an annual dividend of $0.19 per share and has a dividend yield of 1.0%. Kawasaki Heavy Industries pays out -41.2% of its earnings in the form of a dividend. Secom 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.

Valuation and Earnings

This table compares Kawasaki Heavy Industries and Secom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kawasaki Heavy Industries $12.77 billion N/A $392.42 million ($0.17) -78.05
Secom $8.24 billion 2.08 $711.04 million $0.84 21.86

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

Summary

Secom beats Kawasaki Heavy Industries on 7 of the 10 factors compared between the two stocks.

About Kawasaki Heavy Industries

(Get Free Report)

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.

About Secom

(Get Free Report)

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.

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