Otsuka (OTCMKTS:OTSKY) versus Kyowa Kirin (OTCMKTS:KYKOF) Critical Contrast

Otsuka (OTCMKTS:OTSKY) and Kyowa Kirin (OTCMKTS:KYKOF) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Valuation and Earnings

This table compares Otsuka and Kyowa Kirin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otsuka	$16.51 billion	2.21	$2.43 billion	$2.37	14.31
Kyowa Kirin	N/A	N/A	N/A	$34.33	0.42

Otsuka has higher revenue and earnings than Kyowa Kirin. Kyowa Kirin is trading at a lower price-to-earnings ratio than Otsuka, indicating that it is currently the more affordable of the two stocks.

Dividends

Otsuka pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Kyowa Kirin pays an annual dividend of $19.94 per share and has a dividend yield of 138.2%. Otsuka pays out 11.0% of its earnings in the form of a dividend. Kyowa Kirin pays out 58.1% 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.

Profitability

This table compares Otsuka and Kyowa Kirin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otsuka	15.01%	12.33%	9.11%
Kyowa Kirin	N/A	N/A	N/A

Insider & Institutional Ownership

10.3% of Kyowa Kirin shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Otsuka and Kyowa Kirin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otsuka	1	2	1	0	2.00
Kyowa Kirin	1	0	0	0	1.00

Summary

Otsuka beats Kyowa Kirin on 8 of the 11 factors compared between the two stocks.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.

About Kyowa Kirin

Kyowa Kirin Co., Ltd. engages in the research, development, manufacturing, marketing, and import/export of pharmaceuticals for oncology, nephrology, central nervous system, and immunology therapeutic areas in Japan, the United States, rest of the Americas, Europe, Asia, and internationally. Its products include ALLELOCK, an antihistamine agent for patients with various types of allergies; CONIEL, a calcium channel blocker for hypertension and angina pectoris; Crysvita, a recombinant human monoclonal IgG1 antibody against the phosphaturic hormone fibroblast growth factor 23; ESPO, a glycoprotein and human erythropoietin; NESP, an erythropoiesis stimulating agent; and GRAN, a human colony-stimulating factor. The company also develops GRAN /Peglasta/Neulasta for chemotherapy-induced febrile neutropenia; LUMICEF, a biological treatment for moderate to severe plaque psoriasis; Moventig, a mu-opioid receptor antagonist for the treatment of opioid induced constipation; Nouriast/ Nourianz, an adenosine receptor antagonist for Parkinson's disease; and ORKEDIA, an oral calcimimetics agent. In addition, it offers POTELIGEO, a humanized monoclonal antibody for CC chemokine receptor 4; REGPARA for the treatment of secondary hyperparathyroidism; and Romiplate/Nplate, a genetically recombinant protein that produces platelet through the stimulation of thrombopoietin receptors. Kyowa Kirin Co., Ltd. has an agreement with Amgen Inc. to jointly develop and commercialize KHK4083, an anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis. The company was formerly known as Kyowa Hakko Kirin Co., Ltd. and changed its name to Kyowa Kirin Co., Ltd. in June 2019. The company was incorporated in 1949 and is headquartered in Tokyo, Japan. Kyowa Kirin Co., Ltd. is a subsidiary of Kirin Holdings Company, Limited.