Contrasting Marui Group (OTCMKTS:MAURY) and Kohl’s (NYSE:KSS)

Marui Group (OTCMKTS:MAURY) and Kohl’s (NYSE:KSS) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Marui Group and Kohl’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marui Group	0	0	0	0	0.00
Kohl’s	7	8	0	0	1.53

Kohl’s has a consensus target price of $9.75, indicating a potential upside of 1.77%. Given Kohl’s’ stronger consensus rating and higher possible upside, analysts clearly believe Kohl’s is more favorable than Marui Group.

Dividends

Marui Group pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Kohl’s pays an annual dividend of $0.50 per share and has a dividend yield of 5.2%. Marui Group pays out 63.8% of its earnings in the form of a dividend. Kohl’s pays out 45.9% 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. Kohl’s is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Marui Group and Kohl’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marui Group	$1.67 billion	2.22	$175.49 million	$1.88	21.82
Kohl’s	$16.22 billion	0.07	$109.00 million	$1.09	8.79

Marui Group has higher earnings, but lower revenue than Kohl’s. Kohl’s is trading at a lower price-to-earnings ratio than Marui Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Marui Group has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Kohl’s has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Profitability

This table compares Marui Group and Kohl’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marui Group	10.44%	10.89%	2.47%
Kohl’s	0.75%	4.71%	1.27%

Insider and Institutional Ownership

98.0% of Kohl’s shares are held by institutional investors. 1.0% of Kohl’s 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.

Summary

Kohl’s beats Marui Group on 8 of the 15 factors compared between the two stocks.

About Marui Group

Marui Group Co., Ltd., an investment holding company, engages in the retailing and FinTech businesses in Japan. The company engages in the design and construction of commercial facilities; advertising planning and production; property management; rental of real estate properties; small-amount short-term insurance policy business; and sale of investment trusts. It is also involved in the operation of websites; contract store opening and operation services; provision of credit card services; operation of Marui/Modi stores; investing and financing direct-to-consumer businesses; internet sales; specialty store; credit loan; collection and management of receivables; credit check; trucking and forwarding; software development; and operation of IT systems, and building management businesses. The company was founded in 1931 and is headquartered in Tokyo, Japan.

About Kohl’s

Kohl’s Corporation operates as an omnichannel retailer in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. Kohl’s Corporation was founded in 1988 and is headquartered in Menomonee Falls, Wisconsin.