Analyzing Trend Micro (OTCMKTS:TMICY) & Konami (OTCMKTS:KNMCY)

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Trend Micro (OTCMKTS:TMICY) and Konami (OTCMKTS:KNMCY) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Trend Micro and Konami, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trend Micro 0 0 0 0 N/A
Konami 0 0 0 0 N/A

Risk & Volatility

Trend Micro has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Konami has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Valuation and Earnings

This table compares Trend Micro and Konami’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trend Micro $1.45 billion 4.73 $257.66 million $1.84 26.57
Konami $2.36 billion 2.65 $307.76 million $2.24 20.69

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

Profitability

This table compares Trend Micro and Konami’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trend Micro 17.51% 15.82% 8.37%
Konami 13.02% 12.72% 9.29%

Dividends

Trend Micro pays an annual dividend of $1.23 per share and has a dividend yield of 2.5%. Konami pays an annual dividend of $0.98 per share and has a dividend yield of 2.1%. Trend Micro pays out 66.8% of its earnings in the form of a dividend. Konami pays out 43.8% 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.

Insider & Institutional Ownership

0.1% of Trend Micro shares are held by institutional investors. Comparatively, 0.0% of Konami shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Trend Micro beats Konami on 7 of the 12 factors compared between the two stocks.

Trend Micro Company Profile

Trend Micro Incorporated develops and sells security solutions primarily in Japan. The company offers hybrid cloud security solutions, such as data center, cloud, and virtualization security products; network security solutions, including integrated advanced threat prevention and advanced threat detection solutions; user protection solutions comprising endpoint and gateway suites, endpoint security, email security, Web security, SaaS application security, and endpoint detection and response; and support services. It serves finance, insurance, and retail industries, as well as government institutions. Trend Micro Incorporated has a partnership with Moxa Inc. to develop solutions to protect industrial Internet of Things environments; and strategic partnership with Luxoft Holding, Inc. to offer intrusion detection systems and intrusion prevention systems to detect, mitigate, and respond to cyber-attacks on connected cars. The company was founded in 1988 and is headquartered in Tokyo, Japan.

Konami Company Profile

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

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