Analyzing Japan Tob (OTCMKTS:JAPAY) & Ispire Technology (NASDAQ:ISPR)

Japan Tob (OTCMKTS:JAPAY) and Ispire Technology (NASDAQ:ISPR) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares Japan Tob and Ispire Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Tob	14.55%	11.97%	6.14%
Ispire Technology	-30.78%	-223.15%	-32.77%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Japan Tob and Ispire Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	0	0	0	1	4.00
Ispire Technology	1	0	1	1	2.67

Ispire Technology has a consensus price target of $7.50, suggesting a potential upside of 184.09%. Given Ispire Technology’s higher possible upside, analysts clearly believe Ispire Technology is more favorable than Japan Tob.

Institutional and Insider Ownership

5.0% of Ispire Technology shares are owned by institutional investors. 65.4% of Ispire Technology 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.

Valuation and Earnings

This table compares Japan Tob and Ispire Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Tob	$20.83 billion	2.79	$3.06 billion	$0.91	18.00
Ispire Technology	$127.49 million	1.19	-$39.24 million	($0.69)	-3.83

Japan Tob has higher revenue and earnings than Ispire Technology. Ispire Technology is trading at a lower price-to-earnings ratio than Japan Tob, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Japan Tob has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Ispire Technology has a beta of 2.85, meaning that its share price is 185% more volatile than the S&P 500.

Summary

Japan Tob beats Ispire Technology on 9 of the 14 factors compared between the two stocks.

About Japan Tob

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

About Ispire Technology

Ispire Technology Inc. researches, develops, designs, commercializes, sales, markets, and distributes e-cigarettes and cannabis vaping products worldwide. The company was founded in 2019 and is based in Los Angeles, California. Ispire Technology Inc. operates as a subsidiary of Pride Worldwide Investment Limited.