Financial Review: Kimberly-Clark (KMB) versus Nikon (NINOY)

Nikon (OTCMKTS: NINOY) and Kimberly-Clark (NYSE:KMB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Valuation and Earnings

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This table compares Nikon and Kimberly-Clark’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nikon $6.93 billion 1.03 -$66.09 million $1.16 15.28
Kimberly-Clark $18.26 billion 2.05 $2.28 billion $6.23 17.11

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

Profitability

This table compares Nikon and Kimberly-Clark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nikon 2.29% 7.63% 4.01%
Kimberly-Clark 12.48% 427.79% 14.77%

Volatility and Risk

Nikon has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Kimberly-Clark has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Dividends

Nikon pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Kimberly-Clark pays an annual dividend of $4.00 per share and has a dividend yield of 3.8%. Nikon pays out 6.0% of its earnings in the form of a dividend. Kimberly-Clark pays out 64.2% 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. Kimberly-Clark has increased its dividend for 45 consecutive years. Kimberly-Clark is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nikon and Kimberly-Clark, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nikon 0 0 0 0 N/A
Kimberly-Clark 2 10 2 0 2.00

Kimberly-Clark has a consensus price target of $123.86, indicating a potential upside of 16.19%. Given Kimberly-Clark’s higher possible upside, analysts plainly believe Kimberly-Clark is more favorable than Nikon.

Institutional and Insider Ownership

0.2% of Nikon shares are owned by institutional investors. Comparatively, 74.6% of Kimberly-Clark shares are owned by institutional investors. 0.6% of Kimberly-Clark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Kimberly-Clark beats Nikon on 15 of the 16 factors compared between the two stocks.

Nikon Company Profile

Nikon Corporation manufactures and sells optical instruments in Japan and internationally. It operates through Imaging Products Business, Precision Equipment Business, Healthcare Business, and Industrial Metrology and Others segments. The Imaging Products Business segment develops, manufacture, sells and service of digital cameras?interchangeable lens type, interchangeable lenses and compact digital cameras, and other products. The Precision Equipment Business segment develops, manufacture, sells and service of FPD lithography systems for the production of LCD and organic light-emitting diode (OLED) panels; and semiconductor lithography systems for the production of semiconductors used primarily in electronics. The Healthcare Business segment develops, manufactures, sells, and services biological microscopes, cell culture observation systems, ultra-wide field retinal imaging devices, etc.; and engages in the regenerative medicine contract manufacturing business. The Industrial Metrology and Others segment develops, manufactures, sells, and services industrial microscopes, metrology systems, and X-ray/CT inspection systems. This segment is also involved in the customized products, glass, encoders, and ophthalmic lenses businesses, as well as sale of photomask substrates for FPD and optical components. Nikon Corporation has a strategic alliance with Verily Life Sciences LLC in the field of machine learning-enabled retinal imaging. The company was formerly known as Nippon Kogaku K.K. and changed its name to Nikon Corporation in 1988. Nikon Corporation was founded in 1917 and is headquartered in Tokyo, Japan.

Kimberly-Clark Company Profile

Kimberly-Clark Corp. is engaged in the manufacturing and marketing of products made from natural or synthetic fibers. It operates through the following segments: Personal Care, Consumer Tissue, and K-C Professional. The Personal Care segment manufactures and markets disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, and other related products. The Consumer Tissue segment produces and sells facial and bathroom tissue, paper towels, napkins and related products for household use. The K-C Professional segment involves in the provision of wipers, tissue, towels, apparel, soaps and sanitizers. The company was founded by John A. Kimberly, Havilah Babcock, Charles B. Clark, and Frank C. Shattuck in 1872 and is headquartered in Irving, TX.

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