Financial Comparison: Computershare (OTCMKTS:CMSQF) versus Nihon M&A Center (OTCMKTS:NHMAF)

Computershare (OTCMKTS:CMSQF) and Nihon M&A Center (OTCMKTS:NHMAF) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Computershare pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Nihon M&A Center pays an annual dividend of $60.54 per share and has a dividend yield of 1,360.5%. Computershare pays out 58.6% of its earnings in the form of a dividend. Nihon M&A Center pays out 61.8% 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.

Institutional & Insider Ownership

21.9% of Computershare shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Computershare and Nihon M&A Center, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Computershare	0	0	2	0	3.00
Nihon M&A Center	0	0	0	0	0.00

Computershare presently has a consensus target price of $39.50, indicating a potential upside of 66.84%. Given Computershare’s stronger consensus rating and higher possible upside, analysts plainly believe Computershare is more favorable than Nihon M&A Center.

Profitability

This table compares Computershare and Nihon M&A Center’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Computershare	N/A	N/A	N/A
Nihon M&A Center	N/A	N/A	N/A

Valuation and Earnings

This table compares Computershare and Nihon M&A Center”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Computershare	N/A	N/A	N/A	$0.48	49.56
Nihon M&A Center	N/A	N/A	N/A	$97.96	0.05

Nihon M&A Center is trading at a lower price-to-earnings ratio than Computershare, indicating that it is currently the more affordable of the two stocks.

Summary

Computershare beats Nihon M&A Center on 6 of the 8 factors compared between the two stocks.

About Computershare

Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services. The company offers issuer services that include register maintenance, corporate actions, stakeholder relationship management, corporate governance, and related services; mortgage services and property rental, including tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. It also provides business services, including the provision of bankruptcy, class action, and corporate trust administration services; communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery; and technology services, such as software solutions in share registry and financial services, as well as agency services in connection with the administration of debt securities. It operates in Australia, New Zealand, Asia, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States. The company was incorporated in 1978 and is based in Abbotsford, Australia.

About Nihon M&A Center

Nihon M&A Center Holdings Inc. provides mergers and acquisition (M&A) related services in Japan and internationally. The company offers M&A support services, such as reorganization, capital policies, and MBO for small and medium-sized enterprises. Nihon M&A Center Holdings Inc. was incorporated in 1991 and is headquartered in Tokyo, Japan.