Head to Head Analysis: Makita (OTCMKTS:MKTAY) versus Genus (OTCMKTS:GENSF)

Genus (OTCMKTS:GENSF) and Makita (OTCMKTS:MKTAY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

29.7% of Genus shares are held by institutional investors. 1.0% of Makita shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Genus and Makita”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genus	N/A	N/A	N/A	$0.48	65.26
Makita	$5.17 billion	1.68	$527.55 million	$2.05	15.99

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

Dividends

Genus pays an annual dividend of $0.17 per share and has a dividend yield of 0.5%. Makita pays an annual dividend of $1.17 per share and has a dividend yield of 3.6%. Genus pays out 34.9% of its earnings in the form of a dividend. Makita pays out 57.1% 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 Genus and Makita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genus	N/A	N/A	N/A
Makita	10.40%	8.21%	6.95%

Analyst Recommendations

This is a summary of recent ratings and target prices for Genus and Makita, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genus	0	1	1	0	2.50
Makita	1	0	0	0	1.00

Summary

Makita beats Genus on 7 of the 12 factors compared between the two stocks.

About Genus

Genus plc operates as an animal genetics company in North America, Latin America, the United Kingdom, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates through three segments: Genus PIC, Genus ABS, and Genus Research and Development. It sells breeding pigs and semen to breed pigs with various characteristics for pork production under the PIC brand. The company also sells bull semen and embryos to breed calves with various characteristics for milk and beef production under the ABS, Genus, and Bovec brands. In addition, it offers technical services to farmers. The company was incorporated in 1994 and is based in Basingstoke, the United Kingdom.

About Makita

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.