SPECTRIS PLC/ADR (OTCMKTS:SEPJY) and JAPAN TOB INC/ADR (OTCMKTS:JAPAY) Financial Analysis

SPECTRIS PLC/ADR (OTCMKTS:SEPJY) and JAPAN TOB INC/ADR (OTCMKTS:JAPAY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

0.1% of JAPAN TOB INC/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares SPECTRIS PLC/ADR and JAPAN TOB INC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPECTRIS PLC/ADR N/A N/A N/A
JAPAN TOB INC/ADR 18.29% 14.73% 7.52%

Risk and Volatility

SPECTRIS PLC/ADR has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, JAPAN TOB INC/ADR has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Dividends

SPECTRIS PLC/ADR pays an annual dividend of $0.45 per share and has a dividend yield of 2.8%. JAPAN TOB INC/ADR pays an annual dividend of $0.53 per share and has a dividend yield of 4.8%. SPECTRIS PLC/ADR pays out 40.9% of its earnings in the form of a dividend. JAPAN TOB INC/ADR pays out 54.1% 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SPECTRIS PLC/ADR and JAPAN TOB INC/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPECTRIS PLC/ADR 1 0 0 0 1.00
JAPAN TOB INC/ADR 1 0 0 0 1.00

Earnings and Valuation

This table compares SPECTRIS PLC/ADR and JAPAN TOB INC/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SPECTRIS PLC/ADR $2.14 billion 1.82 $247.21 million $1.10 14.85
JAPAN TOB INC/ADR $20.15 billion 1.93 $3.51 billion $0.98 11.20

JAPAN TOB INC/ADR has higher revenue and earnings than SPECTRIS PLC/ADR. JAPAN TOB INC/ADR is trading at a lower price-to-earnings ratio than SPECTRIS PLC/ADR, indicating that it is currently the more affordable of the two stocks.

Summary

JAPAN TOB INC/ADR beats SPECTRIS PLC/ADR on 8 of the 12 factors compared between the two stocks.

About SPECTRIS PLC/ADR

Spectris plc manufactures and sells measuring instruments and controls worldwide. It operates through four segments: Materials Analysis, Test and Measurement, In-line Instrumentation, and Industrial Controls. The Materials Analysis segment provides products and services, which enable customers to determine structure, composition, quantity, and quality of particles and materials during their research and development processes, when assessing materials before production, or during the manufacturing process. It serves metal, minerals and mining, pharmaceutical, fine chemical, and semiconductor industries; and academic research institutes. The Test and Measurement segment supplies test, measurement, and analysis equipment, as well as software and services for product design optimization, manufacturing control, microseismic monitoring, and environmental noise monitoring. It serves automotive, aerospace, electronics, and energy industries, as well as academic research institutes. The In-line Instrumentation segment offers process analytical measurement, asset monitoring, and online controls, as well as associated consumables and services for primary processing and converting industries. It serves process, pulp, paper, tissue, energy, utilities, and Web and converting industries. The Industrial Controls segment provides products and solutions that measure, monitor, control, inform, and connect during the production process. It serves manufacturing, process, energy, electronics, and healthcare industries. The company was formerly known as Fairey Aviation Company Ltd. and changed its name to Spectris plc in May 2001. Spectris plc was founded in 1915 and is headquartered in Egham, the United Kingdom.

About JAPAN TOB INC/ADR

Japan Tobacco, Inc. engages in the manufacture and sale of tobacco, pharmaceutical and processed food products. It operates through the following segments: Japanese Domestic Tobacco, International Tobacco, Pharmaceutical, Processed Food, and Other. The Japanese Domestic segment deals with the production and sale of tobacco products in domestic areas. The International Tobacco segment manufactures and markets tobacco products worldwide. The Pharmaceutical segment develops, manufactures, and sells prescription drugs. The Processed Food segment offers processed food, bakery products and seasonings. The Other segment includes real estate and the handling of corporate expenses relating to corporate communication and operation of the head office. The company was founded on April 1, 1985 and is headquartered in Tokyo, Japan.

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