Financial Analysis: Casio Computer Co.,Ltd. (OTCMKTS:CSIOF) and Matthews International (NASDAQ:MATW)

Matthews International (NASDAQ:MATW) and Casio Computer Co.,Ltd. (OTCMKTS:CSIOF) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Matthews International and Casio Computer Co.,Ltd., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matthews International	2	0	0	0	1.00
Casio Computer Co.,Ltd.	0	0	0	0	0.00

Institutional & Insider Ownership

83.1% of Matthews International shares are owned by institutional investors. Comparatively, 17.1% of Casio Computer Co.,Ltd. shares are owned by institutional investors. 4.7% of Matthews International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Matthews International and Casio Computer Co.,Ltd.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matthews International	$1.50 billion	0.48	-$24.47 million	($0.93)	-24.82
Casio Computer Co.,Ltd.	N/A	N/A	N/A	$77.38	0.15

Casio Computer Co.,Ltd. has lower revenue, but higher earnings than Matthews International. Matthews International is trading at a lower price-to-earnings ratio than Casio Computer Co.,Ltd., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Matthews International and Casio Computer Co.,Ltd.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matthews International	-2.65%	4.51%	1.45%
Casio Computer Co.,Ltd.	N/A	N/A	N/A

Dividends

Matthews International pays an annual dividend of $1.02 per share and has a dividend yield of 4.4%. Casio Computer Co.,Ltd. pays an annual dividend of $21.90 per share and has a dividend yield of 186.5%. Matthews International pays out -109.7% of its earnings in the form of a dividend. Casio Computer Co.,Ltd. pays out 28.3% 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. Matthews International has raised its dividend for 30 consecutive years.

Summary

Matthews International beats Casio Computer Co.,Ltd. on 8 of the 12 factors compared between the two stocks.

About Matthews International

Matthews International Corporation provides brand solutions, memorialization products, and industrial technologies worldwide. It operates through three segments: Memorialization, Industrial Technologies, and SGK Brand Solutions. The Memorialization segment provides bronze and granite memorials, upright granite memorials and monuments, concrete burial vaults, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features, and statues, as well as bronze plaques, letters, emblems, vases, lights and photo ceramics, granite monuments, mausoleums, crypts, and flush memorials. The Industrial Technologies segment designs, manufactures, services, and distributes high-tech custom energy storage solutions, and product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. This segment also provides engineered calendaring, laminating, and coating equipment; stand-alone marking products; laser and ink-jet printing systems; and spare parts, calendar, and coating-roller refurbishing and retrofits. The SGK Brand solutions segment provides brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services for the consumer goods and retail industries. The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.

About Casio Computer Co.,Ltd.

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.