Shimano (OTCMKTS:SMNNY – Get Free Report) and Clarus (NASDAQ:CLAR – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Risk and Volatility
Shimano has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Clarus has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Shimano and Clarus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimano | 0 | 0 | 0 | 0 | 0.00 |
| Clarus | 1 | 3 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares Shimano and Clarus”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shimano | $3.12 billion | 2.96 | $227.74 million | $0.26 | 41.05 |
| Clarus | $250.44 million | 0.49 | -$46.56 million | ($1.16) | -2.74 |
Shimano has higher revenue and earnings than Clarus. Clarus is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Shimano and Clarus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shimano | 7.67% | 2.85% | 2.64% |
| Clarus | -17.70% | -0.11% | -0.08% |
Dividends
Shimano pays an annual dividend of $0.13 per share and has a dividend yield of 1.2%. Clarus pays an annual dividend of $0.10 per share and has a dividend yield of 3.1%. Shimano pays out 50.0% of its earnings in the form of a dividend. Clarus pays out -8.6% 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. Clarus is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
0.0% of Shimano shares are held by institutional investors. Comparatively, 90.3% of Clarus shares are held by institutional investors. 23.5% of Clarus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
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.
About Clarus
Clarus Corporation designs, develops, manufactures, and distributes outdoor equipment and lifestyle products in the United States and internationally. The company operates through two segments, Outdoor and Adventure. The Outdoor segment offers apparels, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skis, ski poles, ski skins, avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment and PIEPS brands. The Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand, as well as sells and retails overlanding and off-road vehicle under the TRED brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was formerly known as Black Diamond, Inc. and changed its name to Clarus Corporation in August 2017. The company was founded in 1957 and is headquartered in Salt Lake City, Utah.
Receive News & Ratings for Shimano Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shimano and related companies with MarketBeat.com's FREE daily email newsletter.
