Financial Analysis: Monotaro (OTCMKTS:MONOY) vs. Token Cat (NASDAQ:TC)

Monotaro (OTCMKTS:MONOY) and Token Cat (NASDAQ:TC) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Volatility & Risk

Monotaro has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Token Cat has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Monotaro and Token Cat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monotaro	0	2	0	0	2.00
Token Cat	1	0	0	0	1.00

Earnings & Valuation

This table compares Monotaro and Token Cat”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monotaro	$2.23 billion	2.43	$217.31 million	$0.44	24.61
Token Cat	$6.74 million	2.57	-$25.76 million	N/A	N/A

Monotaro has higher revenue and earnings than Token Cat.

Institutional and Insider Ownership

0.1% of Monotaro shares are held by institutional investors. Comparatively, 8.9% of Token Cat shares are held by institutional investors. 0.5% of Token Cat shares are held by insiders. 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.

Profitability

This table compares Monotaro and Token Cat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monotaro	9.72%	28.03%	19.08%
Token Cat	N/A	N/A	N/A

Summary

Monotaro beats Token Cat on 7 of the 10 factors compared between the two stocks.

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.

About Token Cat

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.