JFE (OTCMKTS:JFEEF) versus HOYA (OTCMKTS:HOCPY) Critical Contrast

JFE (OTCMKTS:JFEEF) and HOYA (OTCMKTS:HOCPY) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for JFE and HOYA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JFE 0 2 0 0 2.00
HOYA 0 0 4 0 3.00

Risk & Volatility

JFE has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, HOYA has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of HOYA shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares JFE and HOYA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JFE $30.34 billion 0.32 -$205.55 million ($0.36) -46.39
HOYA $5.17 billion 12.56 $1.18 billion $3.16 55.56

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

Profitability

This table compares JFE and HOYA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JFE 2.32% 4.55% 1.70%
HOYA 23.44% 21.09% 16.88%

Summary

HOYA beats JFE on 10 of the 12 factors compared between the two stocks.

About JFE

JFE Holdings, Inc. engages in the management of its group of companies that have interests in steel business, industrial machineries, and environmental systems. It operates through the following segments: Steel, Engineering, and Trading. The Steel segment provides steel products, processed steel products, and raw materials. It also handles equipment maintenance and construction. The Engineering segment offers engineering services for energy, urban environment, recycling, steel manufacturing, and industrial systems. The Trading segment purchases, processes, and distributes steel products, raw materials for steel production, nonferrous metal products, and food. The company was founded on September 27, 2002 and is headquartered in Tokyo, Japan.

About HOYA

HOYA Corp. engages in the manufacture and sale of imaging products, electronics, and medical-related equipment. It operates through the following segments: Information Technology, Life Care, and Others. The Information Technology segment develops, sells and produces input and output (I/O) device related products for the information & communications sector, including imaging, modern digital information and communications technology related products. The Life Care segment produces and sells health care & medical related products. The Others segment includes the information system services and business contracts. The company was founded by Shigeru Yamanaka and Shoichi Yamanaka on November 1, 1941 and is headquartered in Tokyo, Japan.

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