SM Investments (OTCMKTS:SVTMF) vs. Monotaro (OTCMKTS:MONOY) Critical Contrast

SM Investments (OTCMKTS:SVTMF) and Monotaro (OTCMKTS:MONOY) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Earnings & Valuation

This table compares SM Investments and Monotaro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Investments	N/A	N/A	N/A	C$34.06	0.30
Monotaro	$2.23 billion	2.70	$217.31 million	$0.46	26.43

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

Profitability

This table compares SM Investments and Monotaro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SM Investments	N/A	N/A	N/A
Monotaro	9.70%	28.73%	18.93%

Analyst Recommendations

This is a summary of current ratings and recommmendations for SM Investments and Monotaro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Investments	0	0	0	0	0.00
Monotaro	0	1	0	0	2.00

Institutional & Insider Ownership

9.5% of SM Investments shares are held by institutional investors. Comparatively, 0.1% of Monotaro shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

SM Investments pays an annual dividend of C$8.79 per share and has a dividend yield of 86.6%. Monotaro pays an annual dividend of $0.13 per share and has a dividend yield of 1.1%. SM Investments pays out 25.8% of its earnings in the form of a dividend. Monotaro pays out 28.3% 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. SM Investments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Monotaro beats SM Investments on 6 of the 10 factors compared between the two stocks.

About SM Investments

SM Investments Corporation, together with its subsidiaries, invests in retail, banking, and property businesses in the Philippines. The company operates through Property, Retail, Banking, and Portfolio Investments segments. The Property segment develops, conducts, operates, and maintains commercial shopping centers, amusement centers, and cinema theaters within the shopping centers; develops and transforms residential, commercial, entertainment, and tourism districts; and operates hotels and convention centers. The Retail segment engages in the retail and wholesale trading of various merchandise, such as dry goods, wearing apparels, food, and other merchandise. The Banking segment offers lending and deposit-taking products; foreign exchange, brokering, corporate cash management, and remittances services; trust and investments; credit cards; and investment banking, securities broking, insurance broking, and thrift bank. The Portfolio Investments segment develops resort destinations and leisure properties; engages in metallic mineral exploration and mining activities; develops office buildings; and provides shipping and logistic solutions. This segment develops and operates dormitories; develops and operates community malls; provides baked goods and home cooked food; offers end-to-end logistics solutions and express courier services; and operates geothermal steam fields. It is also involved in leasing of office buildings business. SM Investments Corporation was founded in 1958 and is based in Pasay City, the Philippines.

About Monotaro

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. The company offers safety protective equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety, disaster prevention, and crime prevention products; safety signs; ship and fishing supplies; office supplies; office furniture/lighting/cleaning supplies; cutting tools and abrasives; measurement and surveying equipment; hand tools/electric and pneumatic tools; sprays, oils, greases, and paints; adhesives and repair materials; welding supplies; and piping and water related components/pumps/pneumatic and hydraulic equipment/hoses. It also provides mechanical parts; control equipment; soldering and anti-static products; architectural hardware, building materials, painting, and interior supplies; air conditioning and electrical equipment; electrical materials; screws, bolts, nails, and materials; automotive supplies; truck supplies; motorcycle supplies; bicycle supplies; scientific research and development supplies; clean room supplies; kitchen equipment and store supplies; agricultural and gardening supplies; and medical and nursing supplies. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in February 2006. The company was incorporated in 2000 and is headquartered in Osaka, Japan. MonotaRO Co., Ltd. operates as a subsidiary of Grainger Global Holdings, Inc.