Financial Analysis: Japan Steel Works (OTCMKTS:JPSWY) versus EssilorLuxottica Société anonyme (OTCMKTS:ESLOY)

EssilorLuxottica Société anonyme (OTCMKTS:ESLOY) and Japan Steel Works (OTCMKTS:JPSWY) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares EssilorLuxottica Société anonyme and Japan Steel Works”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EssilorLuxottica Société anonyme	$28.69 billion	4.46	$2.55 billion	N/A	N/A
Japan Steel Works	$1.75 billion	1.69	$98.53 million	$0.79	25.11

EssilorLuxottica Société anonyme has higher revenue and earnings than Japan Steel Works.

Dividends

EssilorLuxottica Société anonyme pays an annual dividend of $1.55 per share and has a dividend yield of 1.1%. Japan Steel Works pays an annual dividend of $0.14 per share and has a dividend yield of 0.7%. Japan Steel Works pays out 17.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for EssilorLuxottica Société anonyme and Japan Steel Works, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EssilorLuxottica Société anonyme	0	1	0	0	2.00
Japan Steel Works	0	0	0	0	0.00

Profitability

This table compares EssilorLuxottica Société anonyme and Japan Steel Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EssilorLuxottica Société anonyme	N/A	N/A	N/A
Japan Steel Works	7.01%	10.56%	5.18%

Risk and Volatility

EssilorLuxottica Société anonyme has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Japan Steel Works has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Summary

EssilorLuxottica Société anonyme beats Japan Steel Works on 8 of the 11 factors compared between the two stocks.

About EssilorLuxottica Société anonyme

EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, and sunglasses in Europe, the Middle East, Africa, Latin America, the Asia-Pacific, and North America. It operates through Professional Solutions and Direct to Consumer segments. The company offers lens under the Essilor, Varilux, Crizal, Eyezen, Stellest, Xperio, Transitions, Ray-Ban, Oakley, Barberini, KODAK Lens, Nikon, Shamir, eyexpert, iWear, Humanware, and Optifog brands. It also provides finishing equipment, vision performance screening, eye examination and refractions, fitting parameter measurements, and small tools and consumables under the Essilor Instruments brand; high-tech equipment for optical surfacing, polishing, measuring, coating, and finishing, as well as consumables, tools, and services under the Satisloh brand. In addition, the company provides eyewear products under the Ray-Ban, Oakley, Persol, Oliver Peoples, Vogue Eyewear, Arnette, Alain Mikli, Costa, Bliz, Native, Luxottica, Sferoflex, Bolon, Molsion, DbyD, and Unofficial and Seen, as well as other Licensed brands. In addition, the company designs, develops, markets, and maintains lens edging and mounting instruments for opticians and prescription laboratories; and optometry instruments for eyecare professionals, schools, occupational medicine centers, military, and other institutions. It wholesales its products to independent opticians, distributors, third-party e-commerce platforms, and large retail chains in the eyecare and eyewear industry; and sells directly to consumers through the network of brick and mortar retail network and its online channels. The company was formerly known as Essilor International Société Anonyme and changed its name to EssilorLuxottica Société anonyme in October 2018. EssilorLuxottica Société anonyme was founded in 1849 and is headquartered in Paris, France.

About Japan Steel Works

The Japan Steel Works, Ltd. engages in the provision of industrial machinery products, and material and engineering business in Japan and internationally. It operates through Industrial Machinery Products Business, and Material and Engineering Business segments. The Industrial Machinery Products Business segment offers plastic production and processing machinery, such as pelletizers, film and sheet manufacturing equipment, and twin-screw extruders; molding machines including plastic injection molding, magnesium injection molding, and blow molding machines; and other machinery consists of excimer laser annealing systems, defense equipment, railway products, hot press devices, vacuum laminators, and deposit systems, as well as after-sales services for plastics, mobility, high-performance batteries, electronic devices, and defense applications. The Material and Engineering Business segment provides steel casting and forgings, such as reactor and steam generator parts, rotor shafts, turbine casings, die steel, steel rolls for steel manufacturing, and clad steel plates; and engineering and other services, including design and analysis, welded structures, inspection and survey, and hydrogen pressure accumulators and related products for use in power generation equipment, renewable energy, and infrastructure applications. The company offers photonics, composite materials, and metallic materials for use in semiconductors and electronic devices, cameras and sensing devices, aircraft and mobility components, and electronic parts. The Japan Steel Works, Ltd. was founded in 1907 and is headquartered in Shinagawa, Japan.