Critical Contrast: G4S/ADR (OTCMKTS:GFSZY) and SJM (OTCMKTS:SJMHF)

G4S/ADR (OTCMKTS:GFSZY) and SJM (OTCMKTS:SJMHF) are both mid-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for G4S/ADR and SJM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
G4S/ADR 0 2 1 0 2.33
SJM 1 2 3 0 2.33

Valuation and Earnings

This table compares G4S/ADR and SJM’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
G4S/ADR $9.91 billion 0.36 $109.45 million $1.09 10.45
SJM $5.37 billion 1.11 $251.90 million N/A N/A

SJM has lower revenue, but higher earnings than G4S/ADR.

Volatility & Risk

G4S/ADR has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, SJM has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Profitability

This table compares G4S/ADR and SJM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
G4S/ADR N/A N/A N/A
SJM N/A N/A N/A

Institutional & Insider Ownership

0.1% of G4S/ADR shares are held by institutional investors. 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.

Dividends

G4S/ADR pays an annual dividend of $0.68 per share and has a dividend yield of 6.0%. SJM does not pay a dividend. G4S/ADR pays out 62.4% of its earnings in the form of a dividend.

Summary

SJM beats G4S/ADR on 5 of the 8 factors compared between the two stocks.

G4S/ADR Company Profile

G4S plc, together with its subsidiaries, provides security and related services in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence based risk assessment, incident management, and travel advisory systems, such as RISK360; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides custody, detention, rehabilitation, and care services; automated cash solutions for retailers, automated bulk-teller solution for banks, and mobile banking services, as well as G4S Pay, a retail cash solution; and security advice, risk mitigation strategies, secure support, and integrated solutions. The company serves corporates and industrials, government, financial institutions, private energy/utilities, and ports and airports, as well as the retail, transport and logistics, and leisure and tourism sectors. G4S plc was founded in 1901 and is based in London, the United Kingdom.

SJM Company Profile

SJM Holdings Limited, an investment holding company, develops and operates casinos and related facilities in Macau Special Administrative Region, the People's Republic of China. It operates in two segments, Gaming Operations; and Hotel, Catering and Retail Operations. The Gaming Operations segment engages in VIP gaming, mass market table gaming, slot machine, and other gaming operations. As of December 31, 2017, it operated 20 casinos comprising approximately 1,700 gaming tables and 2,400 slot machines. The Hotel, Catering and Retail Operations segment engages in the hotel business; and provision of catering, retail, and related services. SJM Holdings Limited also provides marketing and promotion, property development, casino operations management, dredging, gaming promotion, and human resources and project management, as well as property and securities holding services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

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