Japan Airlines (OTCMKTS:JAPSY) and H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) Head to Head Comparison

H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) and Japan Airlines (OTCMKTS:JAPSY) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Valuation and Earnings

This table compares H & M Hennes & Mauritz AB (publ) and Japan Airlines’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H & M Hennes & Mauritz AB (publ)	$22.22 billion	1.00	$824.03 million	$0.11	28.59
Japan Airlines	$11.44 billion	N/A	$659.18 million	$0.76	10.39

H & M Hennes & Mauritz AB (publ) has higher revenue and earnings than Japan Airlines. Japan Airlines is trading at a lower price-to-earnings ratio than H & M Hennes & Mauritz AB (publ), indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

H & M Hennes & Mauritz AB (publ) has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Japan Airlines has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of H & M Hennes & Mauritz AB (publ) shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares H & M Hennes & Mauritz AB (publ) and Japan Airlines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H & M Hennes & Mauritz AB (publ)	4.02%	20.67%	5.19%
Japan Airlines	5.81%	10.41%	3.62%

Analyst Recommendations

This is a summary of current ratings and recommmendations for H & M Hennes & Mauritz AB (publ) and Japan Airlines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H & M Hennes & Mauritz AB (publ)	0	3	2	0	2.40
Japan Airlines	0	0	0	0	N/A

Dividends

H & M Hennes & Mauritz AB (publ) pays an annual dividend of $0.08 per share and has a dividend yield of 2.5%. Japan Airlines pays an annual dividend of $0.19 per share and has a dividend yield of 2.4%. H & M Hennes & Mauritz AB (publ) pays out 72.7% of its earnings in the form of a dividend. Japan Airlines pays out 25.0% 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.

Summary

H & M Hennes & Mauritz AB (publ) beats Japan Airlines on 9 of the 12 factors compared between the two stocks.

About H & M Hennes & Mauritz AB (publ)

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.