Analyzing Japan Tobacco (OTCMKTS:JAPAY) and Edenred (OTCMKTS:EDNMY)

Japan Tobacco (OTCMKTS:JAPAY) and Edenred (OTCMKTS:EDNMY) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Analyst Ratings

This is a summary of recent ratings and target prices for Japan Tobacco and Edenred, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tobacco	0	1	0	0	2.00
Edenred	0	0	0	0	N/A

Earnings and Valuation

This table compares Japan Tobacco and Edenred”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Tobacco	$20.26 billion	2.55	$3.42 billion	$0.97	15.02
Edenred	$2.50 billion	3.89	$288.95 million	N/A	N/A

Japan Tobacco has higher revenue and earnings than Edenred.

Risk & Volatility

Japan Tobacco has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Edenred has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Japan Tobacco and Edenred’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Tobacco	16.58%	12.02%	6.74%
Edenred	N/A	N/A	N/A

Dividends

Japan Tobacco pays an annual dividend of $0.43 per share and has a dividend yield of 3.0%. Edenred pays an annual dividend of $0.39 per share and has a dividend yield of 2.0%. Japan Tobacco pays out 44.3% of its earnings in the form of a dividend.

Summary

Japan Tobacco beats Edenred on 6 of the 9 factors compared between the two stocks.

About Japan Tobacco

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

About Edenred

Edenred SE provides digital platform for services and payments for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, a solution that allows employees to take time out for lunch at a partner merchant; Ticket Alimentación that allows users to pay for groceries in neighborhood stores and supermarkets; Ticket Regalo, a gift voucher; Ticket CESU, a human services solution; Ticket Plus Card, a solution that enables the purchase of staples, such as food and fuel; Ticket Welfare, which employees can use to pay for a range of services, such as access to sports facilities and solutions for their children's educational needs; Ticket Guardería for companies without on-site daycare facilities; Childcare Vouchers; Ticket EcoCheque, a solutions that encourages purchase of environmentally friendly products; Ticket Kadeos Culture and Ticket Cultura that are solutions for cultural goods and services. The company also offers mobility solutions comprising Ticket Log for light vehicle fleet management; Ticket Fleet Pro and Ticket Cargo for truck fleet management; Ticket Car for employees to pay for fuel and other business travel expenses; UTA Edenred for paying tolls, optimize routes, pay for roadside assistance and truck servicing, and for VAT reimbursement; fuel cards; and refund services for VAT and excise duties. In addition, it provides complementary solutions comprising corporate payment, invoice processing automation, and salary card solutions. Edenred SE was founded in 1962 and is headquartered in Issy-les-Moulineaux, France.