Panasonic (OTCMKTS: PCRFY) and Sony (NYSE:SNE) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Institutional and Insider Ownership
0.2% of Panasonic shares are owned by institutional investors. Comparatively, 7.0% of Sony shares are owned by institutional investors. 1.0% of Panasonic shares are owned by company insiders. Comparatively, 7.0% of Sony shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Panasonic and Sony, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sony has a consensus target price of $46.92, suggesting a potential downside of 2.02%. Given Sony’s higher possible upside, analysts clearly believe Sony is more favorable than Panasonic.
Valuation and Earnings
This table compares Panasonic and Sony’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Panasonic||$67.93 billion||0.51||$1.39 billion||$0.67||22.33|
|Sony||$67.89 billion||0.89||$681.58 million||$3.68||13.01|
Panasonic has higher revenue and earnings than Sony. Sony is trading at a lower price-to-earnings ratio than Panasonic, indicating that it is currently the more affordable of the two stocks.
This table compares Panasonic and Sony’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Panasonic pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. Sony pays an annual dividend of $0.17 per share and has a dividend yield of 0.4%. Panasonic pays out 10.4% of its earnings in the form of a dividend. Sony pays out 4.6% 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. Panasonic has increased its dividend for 2 consecutive years. Panasonic is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Panasonic has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Sony has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Sony beats Panasonic on 11 of the 18 factors compared between the two stocks.
Panasonic Company Profile
Panasonic Corporation is engaged in the development of diverse electronics technologies and solutions. The Company operates through five segments: Appliances, Eco Solutions, AVC Networks, Automotive & Industrial Systems, and Other. The Appliances segment is engaged in the development, manufacture and sale of consumer electronics, air-conditioners, cold chain and devices. The Eco Solutions segment is engaged in development, manufacture and sale of lighting fixtures, lamps, wiring devices, solar photovoltaic systems, ventilation and air-conditioning equipment, air purifiers and nursing-care-related products. The AVC Networks segment is engaged in development, manufacture and sale of products, such as aircraft in-flight entertainment systems, personal computers, and social infrastructure systems equipment. The Automotive & Industrial Systems segment is engaged in the development, manufacture and sale of automotive products, energy products, industrial devices and factory solutions.
Sony Company Profile
Sony Corporation (Sony) is engaged in the development, design, manufacture and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets, as well as game consoles and software. The Company’s segments include Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound, Semiconductors, Component, Films, Music, Financial Services and All Other. It is engaged in the production, acquisition and distribution of motion pictures and television programming and the operation of television and digital networks. It is also engaged in the development, production, manufacture and distribution of recorded music and the management and licensing of the words and music of songs. It is also engaged in various financial services businesses, including life and non-life insurance operations, through its Japanese insurance subsidiaries and banking operations through a Japanese banking subsidiary.
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