Critical Survey: Konami (OTCMKTS:KNMCY) & Ceridian HCM (NYSE:CDAY)

Risk and Volatility

Ceridian HCM has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Konami has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ceridian HCM and Konami”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceridian HCM	$1.45 billion	7.46	-$73.40 million	$0.03	2,309.00
Konami	$2.42 billion	3.56	$183.01 million	$1.33	47.83

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

Profitability

This table compares Ceridian HCM and Konami’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ceridian HCM	0.28%	2.03%	0.51%
Konami	7.25%	6.91%	4.60%

Insider & Institutional Ownership

0.0% of Konami shares are held by institutional investors. 4.5% of Ceridian HCM shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Konami beats Ceridian HCM on 7 of the 11 factors compared between the two stocks.

About Ceridian HCM

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

About Konami

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.