NEXON (OTCMKTS:NEXOY) versus Toho (OTCMKTS:TKCOF) Head to Head Survey

NEXON (OTCMKTS:NEXOY) and Toho (OTCMKTS:TKCOF) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for NEXON and Toho, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXON	0	2	2	0	2.50
Toho	0	0	0	0	0.00

Earnings and Valuation

This table compares NEXON and Toho”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NEXON	$3.18 billion	3.83	$616.75 million	C$1.01	15.19
Toho	N/A	N/A	N/A	$128.19	0.07

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

Profitability

This table compares NEXON and Toho’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NEXON	23.82%	11.39%	9.01%
Toho	N/A	N/A	N/A

Institutional & Insider Ownership

11.2% of Toho shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

NEXON pays an annual dividend of C$0.26 per share and has a dividend yield of 1.7%. Toho pays an annual dividend of $15.97 per share and has a dividend yield of 181.5%. NEXON pays out 25.7% of its earnings in the form of a dividend. Toho pays out 12.5% 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. Toho is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

NEXON beats Toho on 7 of the 11 factors compared between the two stocks.

About NEXON

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.

About Toho

Toho Co., Ltd. engages in the motion picture, theatrical production, and real estate businesses in Japan. It is involved in producing, buying/selling, and renting movies; producing and selling television programs, movie pamphlets, and video software; and business related to merchandising rights, and other activities. The company engages in the planning, production, and performance of stage productions; and leasing of land/buildings, and others. Toho Co., Ltd. was incorporated in 1932 and is headquartered in Tokyo, Japan.