Head-To-Head Contrast: Japan Airlines (OTCMKTS:JAPSY) and H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY)

Japan Airlines (OTCMKTS:JAPSY) and H & M Hennes & Mauritz AB (publ) (OTCMKTS:HNNMY) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Japan Airlines and H & M Hennes & Mauritz AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Airlines	5.81%	10.41%	3.62%
H & M Hennes & Mauritz AB (publ)	4.02%	20.67%	5.19%

Earnings & Valuation

This table compares Japan Airlines and H & M Hennes & Mauritz AB (publ)’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Airlines	$11.44 billion	N/A	$659.18 million	$0.76	10.39
H & M Hennes & Mauritz AB (publ)	$22.22 billion	1.00	$824.03 million	$0.11	28.59

H & M Hennes & Mauritz AB (publ) has higher revenue and earnings than Japan Airlines. Japan Airlines is trading at a lower price-to-earnings ratio than H & M Hennes & Mauritz AB (publ), indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.0% of H & M Hennes & Mauritz AB (publ) shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Japan Airlines has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, H & M Hennes & Mauritz AB (publ) has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Japan Airlines and H & M Hennes & Mauritz AB (publ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Airlines	0	0	0	0	N/A
H & M Hennes & Mauritz AB (publ)	0	3	2	0	2.40

Dividends

Japan Airlines pays an annual dividend of $0.19 per share and has a dividend yield of 2.4%. H & M Hennes & Mauritz AB (publ) pays an annual dividend of $0.08 per share and has a dividend yield of 2.5%. Japan Airlines pays out 25.0% of its earnings in the form of a dividend. H & M Hennes & Mauritz AB (publ) pays out 72.7% 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.

Summary

H & M Hennes & Mauritz AB (publ) beats Japan Airlines on 9 of the 12 factors compared between the two stocks.

About Japan Airlines

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan, Asia, Oceania, North America, and Europe. The company operates through Air Transportation and Other segments. It offers passenger, ground handling, cargo and mail handling, and maintenance services. The company is also involved in the aerial work and other related business; airport peripheral business; and sale of travel package tours. As of March 31, 2023, it operated a fleet of 224 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.

About H & M Hennes & Mauritz AB (publ)

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.