Analyzing Brother Industries (OTCMKTS:BRTHY) and Hoya (OTCMKTS:HOCPY)

Hoya (OTCMKTS:HOCPY) and Brother Industries (OTCMKTS:BRTHY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Dividends

Hoya pays an annual dividend of $1.23 per share and has a dividend yield of 0.8%. Brother Industries pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%. Hoya pays out 30.1% of its earnings in the form of a dividend. Brother Industries pays out 30.6% 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.

Risk and Volatility

Hoya has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Profitability

This table compares Hoya and Brother Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hoya	23.33%	21.01%	16.56%
Brother Industries	6.19%	7.91%	5.92%

Analyst Ratings

This is a breakdown of current ratings and price targets for Hoya and Brother Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hoya	0	0	0	3	4.00
Brother Industries	0	1	0	0	2.00

Earnings and Valuation

This table compares Hoya and Brother Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hoya	$5.69 billion	9.11	$1.35 billion	$4.08	37.00
Brother Industries	$5.76 billion	0.86	$361.54 million	$2.88	13.40

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

Insider and Institutional Ownership

0.1% of Hoya shares are held by institutional investors. 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.

Summary

Hoya beats Brother Industries on 12 of the 14 factors compared between the two stocks.

About Hoya

HOYA Corporation, a med-tech company, provides high-tech and medical products worldwide. It operates through three segments: Life Care, Telecommunication, and Other. The company offers life care products, including eyeglass and contact lenses; medical endoscopes; intraocular lenses; laparoscopic surgical instruments; automatic endoscope cleaning equipment; and other medical related products, such as prosthetic ceramic fillers and metallic implants for orthopedics. It also operates Eyecity, a specialty retailer of contact lenses. In addition, the company provides information technology products, such as mask blanks and photomasks for manufacturing semiconductor chips; glass disks for hard disk drives; and imaging products that include optical glasses/optical lenses, colored glass filters, and laser equipment/UV light resources. Further, it engages in the research, development, manufacture, and sale of photomasks for manufacturing flat panel displays. Additionally, the company offers ReadSpeaker, a speech synthesis software; and cloud services comprising Kinnosuke, a time and attendance management service, as well as Yonosuke, an electronic payslip service. HOYA Corporation was founded in 1941 and is headquartered in Tokyo, Japan.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.