Booking (NASDAQ:BKNG – Get Free Report) and Monotaro (OTCMKTS:MONOY – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Institutional and Insider Ownership
92.4% of Booking shares are held by institutional investors. Comparatively, 0.1% of Monotaro shares are held by institutional investors. 0.2% of Booking shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Booking and Monotaro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Booking | 0 | 10 | 19 | 3 | 2.78 |
| Monotaro | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Booking and Monotaro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Booking | 19.23% | -134.19% | 24.16% |
| Monotaro | 9.36% | 35.15% | 25.50% |
Valuation and Earnings
This table compares Booking and Monotaro”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Booking | $25.03 billion | 7.12 | $5.88 billion | $143.79 | 38.24 |
| Monotaro | $1.91 billion | N/A | $173.82 million | $0.48 | 32.90 |
Booking has higher revenue and earnings than Monotaro. Monotaro is trading at a lower price-to-earnings ratio than Booking, indicating that it is currently the more affordable of the two stocks.
Dividends
Booking pays an annual dividend of $38.40 per share and has a dividend yield of 0.7%. Monotaro pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Booking pays out 26.7% of its earnings in the form of a dividend. Monotaro pays out 8.3% 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. Booking has raised its dividend for 1 consecutive years. Booking is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Booking has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Monotaro has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Summary
Booking beats Monotaro on 14 of the 17 factors compared between the two stocks.
About Booking
Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).
About Monotaro
MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. 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 February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.
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