Makita (OTCMKTS:MKTAY – Get Free Report) and Nippon Steel (OTCMKTS:NISTF – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Profitability
This table compares Makita and Nippon Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Makita | 10.40% | 8.21% | 6.95% |
| Nippon Steel | N/A | N/A | N/A |
Valuation and Earnings
This table compares Makita and Nippon Steel”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Makita | $5.17 billion | 1.74 | $527.55 million | $2.05 | 16.61 |
| Nippon Steel | N/A | N/A | N/A | $26.24 | 0.17 |
Makita has higher revenue and earnings than Nippon Steel. Nippon Steel is trading at a lower price-to-earnings ratio than Makita, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Makita and Nippon Steel, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Makita | 1 | 0 | 0 | 0 | 1.00 |
| Nippon Steel | 0 | 0 | 0 | 0 | 0.00 |
Institutional & Insider Ownership
11.4% of Nippon Steel shares are owned by institutional investors. 1.0% of Makita shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Makita beats Nippon Steel on 7 of the 9 factors compared between the two stocks.
About Makita
Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.
About Nippon Steel
Nippon Steel Corporation engages in steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions businesses in Japan and internationally. The company offers steel plates, sheets, and slags; bar and rod materials; structural steel; pipes and tubes; titanium and stainless products; and railway, automotive, and machinery parts for applications in automotive, energy, infrastructure, and consumer electronics markets. It is also involved in construction; waste processing and recycling; supplying electricity, gas, and heat; and the provision of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber, and composite products. In addition, the company offers computer systems engineering and consulting, IT-enabled outsourcing, and other services. The company was formerly known as Nippon Steel & Sumitomo Metal Corporation and changed its name to Nippon Steel Corporation in April 2019. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.
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