Shimano (OTCMKTS:SMNNY) vs. The Swatch Group (OTCMKTS:SWGAY) Critical Analysis

The Swatch Group (OTCMKTS:SWGAY) and Shimano (OTCMKTS:SMNNY) are both large-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Volatility and Risk

The Swatch Group has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Shimano has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for The Swatch Group and Shimano, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Swatch Group	3	1	0	0	1.25
Shimano	0	0	0	0	0.00

Profitability

This table compares The Swatch Group and Shimano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Swatch Group	N/A	N/A	N/A
Shimano	9.65%	5.14%	4.73%

Valuation & Earnings

This table compares The Swatch Group and Shimano”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Swatch Group	$8.78 billion	2.47	$967.98 million	N/A	N/A
Shimano	$3.38 billion	3.93	$434.11 million	$0.31	47.97

The Swatch Group has higher revenue and earnings than Shimano.

Dividends

The Swatch Group pays an annual dividend of $0.21 per share and has a dividend yield of 2.3%. Shimano pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Shimano pays out 38.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of Shimano shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

The Swatch Group beats Shimano on 6 of the 11 factors compared between the two stocks.

About The Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.