Reviewing Secom (OTCMKTS:SOMLY) & Yara International ASA (OTCMKTS:YARIY)

Secom (OTCMKTS:SOMLY) and Yara International ASA (OTCMKTS:YARIY) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Secom and Yara International ASA’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Secom	$8.24 billion	1.79	$711.04 million	$0.84	18.82
Yara International ASA	$15.55 billion	0.50	$48.00 million	($0.07)	-218.57

Secom has higher earnings, but lower revenue than Yara International ASA. Yara International ASA is trading at a lower price-to-earnings ratio than Secom, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

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

Dividends

Secom pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Yara International ASA pays an annual dividend of $2.14 per share and has a dividend yield of 14.0%. Secom pays out 23.8% of its earnings in the form of a dividend. Yara International ASA pays out -3,057.1% 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. Yara International ASA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Secom and Yara International ASA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Secom	0	0	0	0	N/A
Yara International ASA	0	0	0	0	N/A

Profitability

This table compares Secom and Yara International ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Secom	8.79%	7.57%	5.07%
Yara International ASA	-0.24%	3.20%	1.46%

Risk & Volatility

Secom has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Yara International ASA has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Summary

Secom beats Yara International ASA on 7 of the 12 factors compared between the two stocks.

About Secom

SECOM CO., LTD., together with its subsidiaries, provides security services in Japan and internationally. The company operates through Security Services, Fire Protection Services, Medical Services, Insurance Services, Geospatial Information Services, BPO and ICT Services, and Other Services. The Security Services segment offers static guard, armored car, merchandise, and other services, as well as online security systems. The Fire Protection Services segment provides fire alarm systems, fire extinguishing systems, and maintenance services to office buildings, production facilities, tunnels, cultural properties, ships, and residences. The Medical Services segment offers home nursing, pharmaceutical dispensing, home delivery services, health and preventative care services, and personal and outpatient care services; and cloud-based medical reporting services and SECOM LINKus application. This segment also operates the general hospital and residences for seniors; and sells medical equipment and pharmaceuticals. The Insurance Services Segment provides fire insurance, automobile insurance, and cancer treatment insurance services. The Geospatial Information Services segment offers geospatial information services to public-sector entities, such as national and local governments; private sector customers; and overseas government agencies. The BPO and ICT Services segment provides contact centers and back office support services, data center, disaster preparedness, information security, and cloud-based services, as well as SaaS solutions. The Other Services segment offers real estate leasing, construction, and installation services. The company was incorporated in 1962 and is headquartered in Tokyo, Japan.

About Yara International ASA

Yara International ASA provides crop nutrition and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers ammonium- and urea-based fertilizers; compound fertilizers that contain nutrients, such as nitrogen, phosphorus, and potassium; coatings; biostimulants; organic-based fertilizers; green fertilizers are nitrate-based mineral fertilizers, as well as foliar and fertigation solutions; and nitrate, calcium nitrate, micronutrient, and fertigation and urea fertilizers. It also offers digital solutions, such as variable rate application solutions; N-Sensor, a tractor-mounted hardware; N-Tester, a handheld nitrogen measurement tool; YaraFX Insight, an agricultural API; and Atfarm, a digital toolbox for farmer. The company sells its products under YaraBela, YaraMila, YaraLiva, YaraVita, YaraRega, YaraTera, YaraSuna, and YaraVera and brands. Yara International ASA was founded in 1905 and is headquartered in Oslo, Norway.