Contrasting Daiwa Securities Group (OTCMKTS:DSEEY) and MonotaRO (OTCMKTS:MONOY)

MonotaRO (OTCMKTS:MONOY) and Daiwa Securities Group (OTCMKTS:DSEEY) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Valuation & Earnings

This table compares MonotaRO and Daiwa Securities Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MonotaRO	$1.81 billion	4.65	$154.87 million	$0.31	54.23
Daiwa Securities Group	$8.85 billion	1.28	$838.75 million	$0.58	12.47

Daiwa Securities Group has higher revenue and earnings than MonotaRO. Daiwa Securities Group is trading at a lower price-to-earnings ratio than MonotaRO, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.1% of MonotaRO 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

MonotaRO pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Daiwa Securities Group pays an annual dividend of $0.28 per share and has a dividend yield of 3.9%. MonotaRO pays out 22.6% of its earnings in the form of a dividend. Daiwa Securities Group pays out 48.3% 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 MonotaRO and Daiwa Securities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MonotaRO	8.70%	27.44%	18.96%
Daiwa Securities Group	9.07%	6.56%	0.35%

Analyst Ratings

This is a breakdown of recent ratings and target prices for MonotaRO and Daiwa Securities Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MonotaRO	0	0	0	0	N/A
Daiwa Securities Group	0	0	0	0	N/A

Risk & Volatility

MonotaRO has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Daiwa Securities Group has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Summary

MonotaRO beats Daiwa Securities Group on 7 of the 12 factors compared between the two stocks.

About MonotaRO

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. It offers products in various categories, such as safety protection equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety supplies/safety signs; office supplies; office furniture/lighting/cleaning supplies; cutting tools/abrasives; measurement/surveying supplies; work/electric/pneumatic tools; spray/oil/grease/paint/adhesion/repair/welding supplies; and agricultural materials/gardening supplies. The company also provides building hardware products, building materials, and painting interior supplies; air conditioning/electrical equipment materials/electrical materials; piping/water supply/pump/pneumatic/hydraulic equipment/hose products; mechanical parts; control equipment/solder/static electricity countermeasure supplies; screws/bolts/nails/materials; car/truck supplies; motorcycle/bicycle supplies; kitchen equipment/kitchen products/store supplies; scientific research and development/clean room supplies; and medical/long-term care products. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in 2006. MonotaRO Co., Ltd. was founded in 2000 and is headquartered in Amagasaki, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.

About Daiwa Securities Group

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset Management, and Investment. The Retail segment offers products and services related to asset management, including equities, bonds, investment trusts, wrap account services, insurance, banking services, inheritance-related services, etc. for individual investors and unlisted companies. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment invests in monetary claims, loans, private equities, and real estate properties, as well as energy, infrastructure, and resource sectors. The company also offers research and consulting, and information services, as well as engages in the office work activities. In addition, it is involved in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.