Analyzing Eisai (OTCMKTS:ESALY) & Burberry Group (OTCMKTS:BURBY)

Burberry Group (OTCMKTS:BURBY) and Eisai (OTCMKTS:ESALY) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

10.3% of Burberry Group shares are owned by institutional investors. Comparatively, 0.0% of Eisai shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Burberry Group and Eisai’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burberry Group	$3.73 billion	0.80	$339.39 million	N/A	N/A
Eisai	$6.74 billion	2.62	$426.79 million	$0.87	70.70

Eisai has higher revenue and earnings than Burberry Group.

Risk and Volatility

Burberry Group has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Eisai has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Profitability

This table compares Burberry Group and Eisai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burberry Group	N/A	N/A	N/A
Eisai	4.11%	3.86%	2.50%

Analyst Ratings

This is a summary of current ratings and price targets for Burberry Group and Eisai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burberry Group	1	1	0	0	1.50
Eisai	0	0	0	0	N/A

Dividends

Burberry Group pays an annual dividend of $1.05 per share and has a dividend yield of 12.6%. Eisai pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. Eisai pays out 101.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Eisai beats Burberry Group on 6 of the 10 factors compared between the two stocks.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.

About Eisai

Eisai Co., Ltd. engages in the development, manufacture, and sale of prescription medicines and over-the-counter products. It operates through the Pharmaceutical Products Business and Other Business segments. The Pharmaceutical Products Business segment handles prescription and generic drugs, diagnostics, and consumer healthcare business in Japan, which manages over-the-counter drugs. The Other Business segment deals with food additives and chemicals. The company was founded by Toyoji Naito in November 1936 and is headquartered in Tokyo, Japan.