Critical Review: Nitori (OTC:NCLTY) versus Aisin (OTCMKTS:ASEKY)

Nitori (OTC:NCLTY) and Aisin (OTCMKTS:ASEKY) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Risk & Volatility

Nitori has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Aisin has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nitori	9.63%	10.83%	7.99%
Aisin	1.30%	2.85%	1.45%

Dividends

Nitori pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. Aisin pays an annual dividend of $0.27 per share and has a dividend yield of 2.6%. Nitori pays out 11.3% of its earnings in the form of a dividend. Aisin pays out 11.4% 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.

Earnings and Valuation

This table compares Nitori and Aisin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nitori	$6.21 billion	2.51	$597.01 million	$0.53	26.00
Aisin	$34.01 billion	0.08	$629.06 million	$2.37	4.40

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nitori and Aisin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitori	0	0	0	0	N/A
Aisin	0	0	0	0	N/A

Summary

Nitori beats Aisin on 7 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 Aisin

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.