Secom (OTCMKTS:SOMLY) vs. A.P. Møller – Mærsk A/S (OTCMKTS:AMKBY) Financial Survey

A.P. Møller – Mærsk A/S (OTCMKTS:AMKBY) and Secom (OTCMKTS:SOMLY) are both large-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Dividends

A.P. Møller – Mærsk A/S pays an annual dividend of $0.24 per share and has a dividend yield of 2.9%. Secom pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. A.P. Møller – Mærsk A/S pays out 47.1% of its earnings in the form of a dividend. Secom pays out 11.9% 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.

Profitability

This table compares A.P. Møller – Mærsk A/S and Secom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A.P. Møller – Mærsk A/S	3.48%	0.66%	0.59%
Secom	8.85%	7.55%	5.08%

Earnings and Valuation

This table compares A.P. Møller – Mærsk A/S and Secom’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A.P. Møller – Mærsk A/S	$51.07 billion	0.60	$3.82 billion	$0.51	15.96
Secom	$8.00 billion	1.70	$706.22 million	$0.84	17.36

A.P. Møller – Mærsk A/S has higher revenue and earnings than Secom. A.P. Møller – Mærsk A/S is trading at a lower price-to-earnings ratio than Secom, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for A.P. Møller – Mærsk A/S and Secom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A.P. Møller – Mærsk A/S	4	4	2	0	1.80
Secom	0	0	0	0	N/A

Risk and Volatility

A.P. Møller – Mærsk A/S has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Secom has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Summary

Secom beats A.P. Møller – Mærsk A/S on 7 of the 12 factors compared between the two stocks.

About A.P. Møller – Mærsk A/S

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.

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.