Contrasting Shimizu (OTCMKTS:SHMUY) and OMRON (OTCMKTS:OMRNY)

Earnings and Valuation

This table compares OMRON and Shimizu”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OMRON	$5.67 billion	0.98	$55.92 million	$0.27	99.70
Shimizu	$13.89 billion	0.34	$113.31 million	$2.93	8.84

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

Profitability

This table compares OMRON and Shimizu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OMRON	0.98%	0.81%	0.56%
Shimizu	4.19%	3.05%	1.16%

Risk and Volatility

OMRON has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Shimizu has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Insider and Institutional Ownership

1.1% of OMRON shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

OMRON pays an annual dividend of $0.51 per share and has a dividend yield of 1.9%. Shimizu pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. OMRON pays out 188.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shimizu pays out 21.8% of its earnings in the form of a dividend. Shimizu is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Shimizu beats OMRON on 8 of the 12 factors compared between the two stocks.

About OMRON

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.

About Shimizu

Shimizu Corporation, together with its subsidiaries, engages in the construction, development, engineering, and life cycle valuation businesses in Japan and internationally. The company proposes, plans, designs, builds, repairs, manages, operates, and maintains offices, plants, schools, hospitals, and other buildings, such as nursing homes, rehabilitation centers, temples, shrines, and architectures; offers design, build, and renovation for tunnels, bridges, dams, urban infrastructure, energy facilities, and other public works; provides construction for manufacturing facilities, high-rise buildings, hospitals, bridges, subways, and other projects; and develops and rents real estate properties, including condominiums, data centers, office buildings, logistics facilities, and other properties. It also offers engineering, procurement, and construction services in solar and wind power projects, environmental clean-up engineering, turn-key order fulfillment of plants, and ICT systems and engineering projects. In addition, the company provides facility operation and management services; infrastructure management, maintenance, and concession services; and generates power using renewable energy and sells electricity, as well as involved in commercialization of smart cities and provision of services using ICT technology. Further, it engages in the lease and sale of construction equipment and materials; provision of interior finishing and rebar works; insurance agency, security, and travel agency services; supply of PCR test kits; and rental of various tower cranes, crawler cranes, and other construction machinery and equipment. Additionally, the company offers construction equipment consulting services, such as construction planning, maintenance, and management services; property and building management services; and real estate consulting and brokerage services, as well as tenant leasing services. Shimizu Corporation was founded in 1804 and is headquartered in Tokyo, Japan.