Kimberly-Clark (KMB) and Nikon (NINOY) Financial Analysis

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

Insider and Institutional Ownership

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74.5% of Kimberly-Clark shares are held by institutional investors. Comparatively, 0.2% of Nikon shares are held by institutional investors. 0.6% of Kimberly-Clark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Kimberly-Clark 12.48% 427.79% 14.77%
Nikon 2.29% 7.69% 4.09%

Volatility and Risk

Kimberly-Clark has a beta of 0.66, suggesting that its share price is 34% 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 Ratings

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

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

Kimberly-Clark currently has a consensus price target of $123.86, indicating a potential upside of 17.02%. Given Kimberly-Clark’s higher probable upside, research analysts plainly believe Kimberly-Clark is more favorable than Nikon.

Dividends

Kimberly-Clark pays an annual dividend of $4.00 per share and has a dividend yield of 3.8%. Nikon pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Kimberly-Clark pays out 64.2% 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. 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.

Earnings and Valuation

This table compares Kimberly-Clark and Nikon’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimberly-Clark $18.26 billion 2.03 $2.28 billion $6.23 16.99
Nikon $6.93 billion 1.02 -$66.09 million $1.16 15.19

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.

Summary

Kimberly-Clark beats Nikon on 14 of the 16 factors compared between the two stocks.

About Kimberly-Clark

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.

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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