Head-To-Head Contrast: Shimano (OTCMKTS:SMNNY) versus DENSO (OTCMKTS:DNZOY)

Profitability

This table compares DENSO and Shimano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DENSO	6.37%	8.06%	5.16%
Shimano	16.84%	9.02%	8.31%

Valuation and Earnings

This table compares DENSO and Shimano”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DENSO	$49.49 billion	0.74	$2.16 billion	$1.02	12.39
Shimano	$2.98 billion	4.02	$504.84 million	$0.56	24.05

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

Institutional and Insider Ownership

0.0% of Shimano shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

DENSO has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Shimano has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Dividends

DENSO pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Shimano pays an annual dividend of $0.13 per share and has a dividend yield of 1.0%. DENSO pays out 23.5% of its earnings in the form of a dividend. Shimano pays out 23.2% 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.

Summary

Shimano beats DENSO on 7 of the 12 factors compared between the two stocks.

About DENSO

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.

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.