SCHNEIDER ELEC /ADR (OTCMKTS:SBGSY) and Eisai (OTCMKTS:ESALY) are both large-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
Risk and Volatility
SCHNEIDER ELEC /ADR has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Eisai has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
SCHNEIDER ELEC /ADR pays an annual dividend of $0.39 per share and has a dividend yield of 2.2%. Eisai pays an annual dividend of $1.24 per share and has a dividend yield of 1.8%. SCHNEIDER ELEC /ADR pays out 33.1% of its earnings in the form of a dividend. Eisai pays out 62.3% 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. SCHNEIDER ELEC /ADR is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares SCHNEIDER ELEC /ADR and Eisai’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SCHNEIDER ELEC /ADR||N/A||N/A||N/A|
Institutional & Insider Ownership
0.5% of SCHNEIDER ELEC /ADR shares are held by institutional investors. Comparatively, 0.1% of Eisai shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares SCHNEIDER ELEC /ADR and Eisai’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SCHNEIDER ELEC /ADR||$30.07 billion||1.74||$2.67 billion||$1.18||15.31|
|Eisai||$5.79 billion||3.46||$570.47 million||$1.99||33.92|
SCHNEIDER ELEC /ADR has higher revenue and earnings than Eisai. SCHNEIDER ELEC /ADR is trading at a lower price-to-earnings ratio than Eisai, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for SCHNEIDER ELEC /ADR and Eisai, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SCHNEIDER ELEC /ADR||0||1||2||0||2.67|
SCHNEIDER ELEC /ADR beats Eisai on 8 of the 14 factors compared between the two stocks.
SCHNEIDER ELEC /ADR Company Profile
Schneider Electric SE provides energy management and automation solutions worldwide. It operates through four businesses: Low Voltage, Medium Voltage, Secure Power, and Industrial Automation. The Low Voltage business provides low voltage power and building automation products and solutions that address the needs of various end markets from buildings to industries and infrastructure to data centers. The Medium Voltage business offers medium voltage distribution and grid automation solutions. The Secure Power business offers secure power services. The Industrial Automation business provides automation and control solutions. The company has a strategic partnership with Alderon Iron Ore Corp. to develop kami iron ore project. Schneider Electric SE was founded in 1836 and is headquartered in Rueil-Malmaison, France.
Eisai Company Profile
Eisai Co., Ltd. engages in the research and development, manufacture, sale, and import and export of pharmaceuticals. It develops Fycompa, an antiepileptic drug in the neurology area that is approved as an adjunctive therapy for partial-onset seizures in Japan, the United States, Europe, and Asia. The company is also approved for use as monotherapy for the treatment of partial onset seizures in the United States; and as an adjunctive therapy for primary generalized tonic-clonic seizures in Japan, the United States, Europe, and Asia. It also offers Aricept for the treatment of Alzheimer's disease/dementia with Lewy bodies worldwide; and BELVIQ, an antiobesity agent in the United States. In addition, it develops Halaven, an anticancer agent in the oncology area for use in the treatment of breast cancer in approximately 65 countries and also for use in the treatment of malignant soft tissue sarcoma in 50 countries; and Lenvima, an anticancer agent for use in the treatment of thyroid cancer in Japan, the United States, Europe, and Asia. Further, the company has been approved as combination therapy with everolimus for use in the treatment of renal cell carcinoma in the United States and Europe. It has strategic collaboration with Merck & Co., Inc. for Lenvima in the oncology and dementia fields; and with Ono Pharmaceutical Co., Ltd. for Lenvima and Opdivo combination therapy for the treatment of hepatocellular carcinoma, as well as Collaboration Agreement with Ono Pharmaceutical Co., Ltd. to develop a therapy for treatment of hepatocellular carcinoma. The company was formerly known as Nihon Eisai Co., Ltd. and changed its name to Eisai Co., Ltd. in 1955. Eisai Co., Ltd. was founded in 1941 and is headquartered in Tokyo, Japan.
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