Konica Minolta (OTCMKTS:KNCAY) and Brother Industries (OTCMKTS:BRTHY) Critical Survey

Dividends

Konica Minolta pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Brother Industries pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. Konica Minolta pays out -33.3% of its earnings in the form of a dividend. Brother Industries pays out 60.3% 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.

Earnings and Valuation

This table compares Konica Minolta and Brother Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Konica Minolta	$8.04 billion	0.18	$29.85 million	($0.12)	-49.08
Brother Industries	$5.70 billion	0.85	$218.36 million	$1.79	21.15

Brother Industries has lower revenue, but higher earnings than Konica Minolta. Konica Minolta is trading at a lower price-to-earnings ratio than Brother Industries, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Konica Minolta has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Profitability

This table compares Konica Minolta and Brother Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Konica Minolta	-0.40%	-0.84%	-0.34%
Brother Industries	4.00%	5.02%	3.76%

Summary

Brother Industries beats Konica Minolta on 8 of the 11 factors compared between the two stocks.

About Konica Minolta

Konica Minolta, Inc. engages in digital workplace, professional print, healthcare, and industrial businesses in Japan, China, other Asian countries, the United States, Europe, and internationally. It develops, manufactures, and sells multi-functional peripherals, digital printing systems, and related consumables, as well as offers IT and printing solutions and services. The company also provides diagnostic imaging systems, such as digital X-ray diagnostic imaging, diagnostic ultrasound systems, and other systems; digitalization, networking, solutions, and services in the medical field; genetic testing and drug discovery support services; and primary care services. In addition, it offers measuring instruments; functional film displays; organic light emitting diode lighting products; industrial inkjet printheads; lenses for industrial and professional use; and imaging IoT and visual solutions. The company was founded in 1873 and is headquartered in Tokyo, Japan.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.