Critical Contrast: Hays (OTCMKTS:HAYPY) and Shimano (OTCMKTS:SMNNY)

Hays (OTCMKTS:HAYPY – Get Rating) and Shimano (OTCMKTS:SMNNY – Get Rating) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Hays pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Shimano pays an annual dividend of $0.15 per share and has a dividend yield of 1.0%. Shimano pays out 14.2% of its earnings in the form of a dividend.

Volatility and Risk

Hays has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Shimano has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hays and Shimano’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hays	$8.77 billion	0.25	$205.26 million	N/A	N/A
Shimano	$4.76 billion	2.95	$969.28 million	$1.06	14.62

Shimano has lower revenue, but higher earnings than Hays.

Insider and Institutional Ownership

0.0% of Shimano shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hays	N/A	N/A	N/A
Shimano	20.29%	18.15%	16.14%

Analyst Ratings

This is a summary of current ratings and price targets for Hays and Shimano, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hays	0	2	0	0	2.00
Shimano	2	0	0	0	1.00

Summary

Shimano beats Hays on 6 of the 11 factors compared between the two stocks.

About Hays

(Get Rating)

Hays plc engages in the provision of recruitment and office support services. It operates through the following geographical segments: Australia and New Zealand, Germany, United Kingdom and Ireland, and the Rest of the World. The company was founded by Denis R. Waxman in 1968 and is headquartered in London, the United Kingdom.

About Shimano

(Get Rating)

Shimano, Inc. engages in the development, production and distribution of bicycle components, fishing tackle, and rowing equipments. It operates through the following segments: Bicycle Components, Fishing Tackle, and Others. The Bicycle Components segment manufactures and sells derailleur gears, brakes, wheel and other related products. The Fishing Tackle segment includes reels, rods, and fishing gears. The Others segment comprises of cold-forged products and rowing equipment. The company was founded by Shozaburo Shimano in February 1921 and is headquartered in Sakai, Japan.