Comparing Bemis (BMS) and Nikon (NINOY)

Bemis (NYSE: BMS) and Nikon (OTCMKTS:NINOY) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

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This table compares Bemis and Nikon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bemis 2.32% 17.52% 5.77%
Nikon 2.29% 7.69% 4.09%

Risk & Volatility

Bemis has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Nikon has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Bemis and Nikon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bemis 1 7 4 0 2.25
Nikon 0 0 0 0 N/A

Bemis presently has a consensus target price of $47.91, suggesting a potential upside of 7.52%. Given Bemis’ higher probable upside, research analysts clearly believe Bemis is more favorable than Nikon.

Dividends

Bemis pays an annual dividend of $1.24 per share and has a dividend yield of 2.8%. Nikon pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Bemis pays out 51.9% of its earnings in the form of a dividend. Nikon pays out 6.0% 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. Bemis has increased its dividend for 34 consecutive years. Bemis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Bemis and Nikon’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bemis $4.05 billion 1.00 $94.00 million $2.39 18.64
Nikon $6.93 billion 1.01 -$66.09 million $1.16 14.98

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

Insider and Institutional Ownership

77.5% of Bemis shares are owned by institutional investors. Comparatively, 0.2% of Nikon shares are owned by institutional investors. 1.1% of Bemis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Bemis beats Nikon on 13 of the 16 factors compared between the two stocks.

About Bemis

Bemis Company, Inc. manufactures and sells packaging products in the United States, Brazil, other Americas, Europe, and the Asia-Pacific. It operates through three segments: U.S. Packaging, Latin America Packaging, and Rest of World Packaging. The company offers multilayer polymer, blown, and cast film structures; and injection molded plastic, thermoformed plastic, and folding carton packaging products. Its products are used to produce packaging for food, medical, pharmaceutical, personal care, electronics, and industrial applications. The company was formerly known as Bemis Bro. Bag Company and changed its name to Bemis Company, Inc. in 1965. Bemis Company, Inc. was founded in 1858 and is based in Neenah, Wisconsin.

About Nikon

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.

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