Critical Review: Japan Tobacco (OTCMKTS:JAPAY) vs. Just Eat (OTCMKTS:JSTTY)

Japan Tobacco (OTCMKTS:JAPAY) and Just Eat (OTCMKTS:JSTTY) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Japan Tobacco and Just Eat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tobacco	0	0	0	1	4.00
Just Eat	0	0	0	0	0.00

Profitability

This table compares Japan Tobacco and Just Eat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Tobacco	14.74%	11.11%	6.35%
Just Eat	N/A	N/A	N/A

Volatility and Risk

Japan Tobacco has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Just Eat has a beta of -2.05, suggesting that its share price is 305% less volatile than the S&P 500.

Earnings and Valuation

This table compares Japan Tobacco and Just Eat”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Tobacco	$20.83 billion	2.55	$3.06 billion	$0.87	17.17
Just Eat	$1.04 billion	7.25	$110.39 million	N/A	N/A

Japan Tobacco has higher revenue and earnings than Just Eat.

Summary

Japan Tobacco beats Just Eat on 8 of the 9 factors compared between the two stocks.

About Japan Tobacco

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

About Just Eat

Just Eat plc, together with its subsidiaries, operates a hybrid marketplace for online food delivery. The company enables consumers to order and pay for food from its restaurant partners. It serves approximately 26 million customers and 100,000 restaurant partners in the United Kingdom, Australia, New Zealand, Canada, Denmark, France, Ireland, Italy, Mexico, Norway, Spain, Switzerland, and Brazil. The company was founded in 2001 and is headquartered in London, the United Kingdom.