GoPro (GPRO) and Ricoh (RICOY) Financial Contrast

GoPro (NASDAQ: GPRO) and Ricoh (OTCMKTS:RICOY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

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This table compares GoPro and Ricoh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GoPro -15.50% -40.56% -17.17%
Ricoh 0.80% 1.45% 0.59%

Risk & Volatility

GoPro has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Ricoh has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for GoPro and Ricoh, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GoPro 3 9 0 0 1.75
Ricoh 0 0 0 0 N/A

GoPro currently has a consensus target price of $7.55, suggesting a potential upside of 54.71%. Given GoPro’s higher probable upside, analysts clearly believe GoPro is more favorable than Ricoh.

Valuation and Earnings

This table compares GoPro and Ricoh’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GoPro $1.18 billion 0.60 -$182.87 million ($1.06) -4.60
Ricoh $18.77 billion 0.38 $31.74 million $0.04 245.00

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

Dividends

Ricoh pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. GoPro does not pay a dividend. Ricoh pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

26.0% of GoPro shares are owned by institutional investors. Comparatively, 0.0% of Ricoh shares are owned by institutional investors. 28.6% of GoPro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Ricoh beats GoPro on 8 of the 13 factors compared between the two stocks.

GoPro Company Profile

GoPro, Inc. develops and sells cameras, and mountable and wearable accessories in the United States and internationally. The company offers HERO5 and HERO6, which are cloud-connected line of cameras; Fusion, a waterproof spherical camera; GoPro Plus, a cloud-based storage solution that enables subscribers to access, edit, and share content; Quik, a mobile editing app, as well as desktop app for editing options for power users; GoPro App, a mobile app that allows users to preview and play back photos and videos, control GoPro cameras, and share content; and Karma Grip, a handheld or body-mountable camera stabilizer that capture zero-shake smooth video. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, chest harnesses, and head straps. GoPro, Inc. markets and sells its products through retailers and wholesale distributors, as well as through its Website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2004 and is headquartered in San Mateo, California.

Ricoh Company Profile

Ricoh Company, Ltd. is engaged in integrated domestic and overseas manufacturing services. The Company’s segments include Imaging & Solutions, Industrial Products and Other. The Company’s Imaging & Solutions segment is engaged in office imaging, production printing and network system solutions. The Company’s Industrial Products segment is engaged in manufacturing and sales of thermal media, optical equipment, semiconductors, electronic component and Inkjet head. Its Other segment is engaged in manufacturing and sales of digital cameras, financing business and logistics services provided through the Company’s subsidiaries. It offers various services, which include business process services, communication services, managed document services, sustainability management services workplace services, information technology (IT) infrastructure services and application services. It offers industry solution to various sectors, which include healthcare, higher education and financial services.

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