Comparing Nitori (OTC:NCLTY) and ZTE (OTCMKTS:ZTCOY)

Profitability

This table compares Nitori and ZTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nitori	9.37%	10.53%	7.86%
ZTE	5.89%	13.25%	4.04%

Earnings and Valuation

This table compares Nitori and ZTE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nitori	$6.21 billion	1.60	$597.01 million	$0.47	18.64
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60

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

Dividends

Nitori pays an annual dividend of $0.05 per share and has a dividend yield of 0.6%. ZTE pays an annual dividend of $0.07 per share and has a dividend yield of 1.7%. Nitori pays out 10.6% of its earnings in the form of a dividend. ZTE pays out 14.9% 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.

Volatility and Risk

Nitori has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Summary

Nitori beats ZTE on 6 of the 11 factors compared between the two stocks.

About Nitori

Nitori Holdings Co., Ltd. engages in the retail of furniture and interior products in Japan. It is involved in the advertising; logistics; and other activities. The company engages in insurance and clothing related businesses. Nitori Holdings Co., Ltd. was founded in 1967 and is headquartered in Tokyo, Japan.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.