Head to Head Review: Burberry Group (OTCMKTS:BURBY) vs. Eisai (OTCMKTS:ESALY)

Eisai (OTCMKTS:ESALY) and Burberry Group (OTCMKTS:BURBY) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Valuation and Earnings

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

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

Eisai has higher revenue and earnings than Burberry Group.

Analyst Recommendations

This is a breakdown of recent ratings for Eisai and Burberry Group, as provided by MarketBeat.

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

Risk & Volatility

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

Profitability

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

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

Institutional & Insider Ownership

0.0% of Eisai shares are owned by institutional investors. Comparatively, 10.3% of Burberry Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Eisai pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. Burberry Group pays an annual dividend of $1.05 per share and has a dividend yield of 12.6%. 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 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.

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.