Pigeon (OTCMKTS:PGENY) and Samsonite Group (OTCMKTS:SMSEY) Critical Analysis

Samsonite Group (OTCMKTS:SMSEY) and Pigeon (OTCMKTS:PGENY) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Samsonite Group and Pigeon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsonite Group	0	1	0	2	3.33
Pigeon	0	0	0	0	0.00

Dividends

Samsonite Group pays an annual dividend of $0.38 per share and has a dividend yield of 4.0%. Pigeon pays an annual dividend of $0.07 per share and has a dividend yield of 2.2%. Samsonite Group pays out 36.5% of its earnings in the form of a dividend. Pigeon pays out 63.6% 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. Samsonite Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Samsonite Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Pigeon has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Earnings and Valuation

This table compares Samsonite Group and Pigeon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Samsonite Group	$3.50 billion	0.76	$289.00 million	$1.04	9.18
Pigeon	$730.24 million	2.06	$57.43 million	$0.11	28.64

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

Profitability

This table compares Samsonite Group and Pigeon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Samsonite Group	8.27%	19.58%	5.61%
Pigeon	7.67%	11.20%	8.61%

Summary

Samsonite Group beats Pigeon on 10 of the 13 factors compared between the two stocks.

About Samsonite Group

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.

About Pigeon

Pigeon Corporation, together with its subsidiaries, engages in the manufacture, sale, import, and export of baby and child-care products, maternity items, women’s care products, home healthcare products, and nursing care products in Japan and internationally. The company operates in four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. The company is involved in the provision of baby and mother care products, such as nursing bottles and nipples, toiletries, breast pads, breast pumps, nipple care products, breast milk storage bags, and breastfeeding-related products under Pigeon and Lansinoh brands. It also offers non-woven products, baby strollers, aging-prevention products, wet wipes, skincare products, cleaning and disinfecting products, and elder care products and services. In addition, the company provides child-minding and daycare services, in-home nursing care support services, outpatient care facility services, operation of in-company childcare facilities, daycare services, event childcare services, babysitter dispatch services, preschool education services, and at-home elder care services. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.