Ricoh (OTCMKTS:RICOY – Get Free Report) and Pitney Bowes (NYSE:PBI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Insider & Institutional Ownership
67.9% of Pitney Bowes shares are held by institutional investors. 9.0% of Pitney Bowes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Ricoh and Pitney Bowes”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ricoh | $16.60 billion | 0.31 | $301.68 million | $0.46 | 19.48 |
| Pitney Bowes | $2.03 billion | 0.95 | -$203.60 million | ($0.91) | -11.52 |
Ricoh has higher revenue and earnings than Pitney Bowes. Pitney Bowes is trading at a lower price-to-earnings ratio than Ricoh, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ricoh and Pitney Bowes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ricoh | 1.68% | 3.91% | 1.77% |
| Pitney Bowes | -7.18% | -31.61% | 4.53% |
Risk & Volatility
Ricoh has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Pitney Bowes has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Ricoh and Pitney Bowes, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ricoh | 0 | 0 | 0 | 0 | 0.00 |
| Pitney Bowes | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Ricoh pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Pitney Bowes pays an annual dividend of $0.28 per share and has a dividend yield of 2.7%. Ricoh pays out 19.6% of its earnings in the form of a dividend. Pitney Bowes pays out -30.8% 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. Pitney Bowes has increased its dividend for 1 consecutive years. Pitney Bowes is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Pitney Bowes beats Ricoh on 9 of the 15 factors compared between the two stocks.
About Ricoh
Ricoh Company, Ltd. provides office, commercial printing, and related solutions worldwide. It operates through Digital services, Digital Products, Graphic Communications, Industrial Solutions, and Other segments. The company sells multifunctional printers (MFPs), laser printers, digital duplicators, wide format printers, facsimile machines, scanners, personal computers, servers, network equipment, related parts and supplies, services, and support and service and solutions related to documents. It also offers production and OEM services for MFPs, laser printers, digital duplicators, wide format printers, facsimile machine, scanners, network equipment, and related parts and supplies. In addition, the company produces and sells cut sheet printers, continuous feed printers, inkjet heads, imaging systems, industrial printers, related parts and supplies, services, and support and software. Further, it produces and sells thermal paper and media products, industrial optical components/modules, and electronic components and precision mechanical components, as well as offers digital cameras, 360°cameras, and environment and healthcare products. The company was formerly known as Riken Optical Co., Ltd. and changed its name to Ricoh Company, Ltd. in 1963. Ricoh Company, Ltd. was incorporated in 1936 and is headquartered in Tokyo, Japan.
About Pitney Bowes
Pitney Bowes Inc., a shipping and mailing company, provides technology, logistics, and financial services to small and medium-sized businesses, large enterprises, retailers, and government clients in the United States and internationally. It operates through Global Ecommerce, Presort Services, and SendTech Solutions segments. The Global Ecommerce segment provides domestic parcel services, cross-border solutions, and digital delivery services. The Presort Services segment offers mail sortation services, which allow clients to qualify volumes of first-class mail, marketing mail, marketing mail flats, and bound printed matter for postal work sharing discounts. The SendTech Solutions segment provides physical and digital mailing and shipping technology solutions, and other applications for sending, tracking and receiving of letters, parcels, and flats as well as financing alternatives to finance equipment and product purchases. It markets its products, solutions, and services through direct and inside sales force, global and regional partner channels, direct mailings, and digital channels. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was incorporated in 1920 and is headquartered in Stamford, Connecticut.
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