Head-To-Head Review: Capcom (CCOEY) and Apple (AAPL)

Capcom (OTCMKTS: CCOEY) and Apple (NASDAQ:AAPL) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Profitability

This table compares Capcom and Apple’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capcom 12.93% 13.31% 9.26%
Apple 21.55% 39.97% 14.27%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Capcom and Apple, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capcom 0 1 0 0 2.00
Apple 1 15 29 2 2.68

Capcom currently has a consensus target price of $17.84, suggesting a potential upside of 50.92%. Apple has a consensus target price of $204.80, suggesting a potential upside of 9.15%. Given Capcom’s higher possible upside, research analysts clearly believe Capcom is more favorable than Apple.

Institutional and Insider Ownership

0.0% of Capcom shares are owned by institutional investors. Comparatively, 58.2% of Apple shares are owned by institutional investors. 0.1% of Apple shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Capcom has a beta of -4.96, indicating that its share price is 596% less volatile than the S&P 500. Comparatively, Apple has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares Capcom and Apple’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capcom $806.32 million 6.42 $79.27 million $0.18 65.67
Apple $229.23 billion 4.15 $48.35 billion $9.21 20.37

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

Dividends

Capcom pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Apple pays an annual dividend of $2.92 per share and has a dividend yield of 1.6%. Capcom pays out 11.1% of its earnings in the form of a dividend. Apple pays out 31.7% 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. Apple has raised its dividend for 5 consecutive years. Apple is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Apple beats Capcom on 14 of the 18 factors compared between the two stocks.

Capcom Company Profile

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells package games and digital download content. This segment also develops and manages mobile contents and PC online games. The Arcade Operations segment operates ?Plaza Capcom? amusement facilities primarily in commercial complexes, and hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of frames and LCD devices for gaming machines, as well as software; and development, production, and sale of arcade games for amusement facilities. The Other Businesses segment publishes walkthrough and strategy guides, as well as game art books; licenses music CDs and merchandise; and develops game content into movies and animated television programs. The company was founded in 1979 and is headquartered in Osaka, Japan.

Apple Company Profile

Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers to consumers, and small and mid-sized businesses; and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as operating systems comprising iOS, macOS, watchOS, and tvOS. The company also provides iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers' TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod touch, a flash memory-based digital music and media player. Further, the company sells Apple-branded and third-party accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service that stores music, photos, contacts, calendars, mail, documents, and others; AppleCare, which offers support options for its customers; and Apple Pay, a cashless payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.

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