Matthews International (NASDAQ:MATW) vs. Oriental Land (OTCMKTS:OLCLY) Head-To-Head Analysis

Matthews International (NASDAQ:MATW) and Oriental Land (OTCMKTS:OLCLY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Matthews International and Oriental Land, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matthews International	2	1	0	0	1.33
Oriental Land	0	1	0	0	2.00

Matthews International presently has a consensus price target of $24.00, suggesting a potential upside of 20.00%. Given Matthews International’s higher probable upside, analysts plainly believe Matthews International is more favorable than Oriental Land.

Earnings and Valuation

This table compares Matthews International and Oriental Land”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matthews International	$1.50 billion	0.42	-$24.47 million	($0.93)	-21.51
Oriental Land	$4.68 billion	7.03	$804.41 million	$0.54	37.19

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

Dividends

Matthews International pays an annual dividend of $1.02 per share and has a dividend yield of 5.1%. Oriental Land pays an annual dividend of $0.06 per share and has a dividend yield of 0.3%. Matthews International pays out -109.7% of its earnings in the form of a dividend. Oriental Land pays out 11.1% 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. Matthews International has increased its dividend for 30 consecutive years. Matthews International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Matthews International has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Oriental Land has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Matthews International and Oriental Land’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matthews International	-2.65%	4.51%	1.45%
Oriental Land	18.75%	12.35%	8.57%

Institutional and Insider Ownership

83.1% of Matthews International shares are owned by institutional investors. 4.7% of Matthews International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Oriental Land beats Matthews International on 9 of the 16 factors compared between the two stocks.

About Matthews International

Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide. It operates through three segments: Memorialization, Industrial Technologies, and SGK Brand Solutions. The Memorialization segment provides bronze and granite memorials, upright granite memorials and monuments, concrete burial vaults, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features, and statues, as well as bronze plaques, letters, emblems, vases, lights and photo ceramics, granite monuments, mausoleums, crypts, and flush memorials. The Industrial Technologies segment designs, manufactures, services, and distributes high-tech custom energy storage solutions, and product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. This segment also provides engineered calendaring, laminating, and coating equipment; stand-alone marking products; laser and ink-jet printing systems; and spare parts, calendar, and coating-roller refurbishing and retrofits. The SGK Brand solutions segment provides brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services for the consumer goods and retail industries. The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.

About Oriental Land

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.