Olympus (OTCMKTS:OCPNY – Get Free Report) and Acme United (NYSE:ACU – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Insider and Institutional Ownership
0.0% of Olympus shares are owned by institutional investors. Comparatively, 62.1% of Acme United shares are owned by institutional investors. 29.5% of Acme United shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Olympus and Acme United”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Olympus | $7.74 billion | 2.99 | $1.03 billion | $0.82 | 21.95 |
| Acme United | $211.60 million | 1.15 | $17.79 million | $2.38 | 26.79 |
Olympus has higher revenue and earnings than Acme United. Olympus is trading at a lower price-to-earnings ratio than Acme United, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Olympus and Acme United, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Olympus | 0 | 0 | 1 | 0 | 3.00 |
| Acme United | 0 | 0 | 0 | 1 | 4.00 |
Profitability
This table compares Olympus and Acme United’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Olympus | 13.80% | 24.30% | 9.30% |
| Acme United | 10.25% | 9.70% | 6.10% |
Dividends
Olympus pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Acme United pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Olympus pays out 9.8% of its earnings in the form of a dividend. Acme United pays out 26.9% 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. Acme United has increased its dividend for 20 consecutive years. Acme United is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Olympus has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Acme United has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.
Summary
Olympus beats Acme United on 10 of the 17 factors compared between the two stocks.
About Olympus
Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.
About Acme United
Acme United Corporation supplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides sharpening knives, scissors, chisels, skis, skates, and other edge under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; first aid kits for the promotional products industry under Safety Made brand; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores, mass market retailers, industrial and medical distributors, school supply distributors, drug store retailers, sporting goods stores, hardware chains, and wholesale florists, as well as through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.
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