Head-To-Head Review: Shimizu (OTCMKTS:SHMUY) versus Zalando (OTCMKTS:ZLNDY)

Zalando (OTCMKTS:ZLNDY) and Shimizu (OTCMKTS:SHMUY) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Zalando and Shimizu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	0	0	1	4.00
Shimizu	0	0	0	0	0.00

Profitability

This table compares Zalando and Shimizu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zalando	1.97%	8.34%	2.59%
Shimizu	0.60%	-2.11%	-0.80%

Earnings and Valuation

This table compares Zalando and Shimizu”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zalando	$10.98 billion	0.79	$89.83 million	$0.42	39.19
Shimizu	$13.89 billion	0.34	$118.89 million	$0.44	58.84

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

Risk & Volatility

Zalando has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Shimizu has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Summary

Zalando beats Shimizu on 7 of the 11 factors compared between the two stocks.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.

About Shimizu

Shimizu Corporation, together with its subsidiaries, engages in the construction, development, engineering, and life cycle valuation businesses in Japan and internationally. The company proposes, plans, designs, builds, repairs, manages, operates, and maintains offices, plants, schools, hospitals, and other buildings, such as nursing homes, rehabilitation centers, temples, shrines, and architectures; offers design, build, and renovation for tunnels, bridges, dams, urban infrastructure, energy facilities, and other public works; provides construction for manufacturing facilities, high-rise buildings, hospitals, bridges, subways, and other projects; and develops and rents real estate properties, including condominiums, data centers, office buildings, logistics facilities, and other properties. It also offers engineering, procurement, and construction services in solar and wind power projects, environmental clean-up engineering, turn-key order fulfillment of plants, and ICT systems and engineering projects. In addition, the company provides facility operation and management services; infrastructure management, maintenance, and concession services; and generates power using renewable energy and sells electricity, as well as involved in commercialization of smart cities and provision of services using ICT technology. Further, it engages in the lease and sale of construction equipment and materials; provision of interior finishing and rebar works; insurance agency, security, and travel agency services; supply of PCR test kits; and rental of various tower cranes, crawler cranes, and other construction machinery and equipment. Additionally, the company offers construction equipment consulting services, such as construction planning, maintenance, and management services; property and building management services; and real estate consulting and brokerage services, as well as tenant leasing services. Shimizu Corporation was founded in 1804 and is headquartered in Tokyo, Japan.