Daikin Industries (OTCMKTS:DKILY – Get Free Report) and Star Group (NYSE:SGU – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Daikin Industries and Star Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Daikin Industries | 5.80% | 9.16% | 5.12% |
| Star Group | 4.12% | 22.68% | 7.45% |
Analyst Recommendations
This is a summary of current ratings and target prices for Daikin Industries and Star Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Daikin Industries | 0 | 0 | 0 | 0 | 0.00 |
| Star Group | 0 | 1 | 0 | 0 | 2.00 |
Risk and Volatility
Dividends
Daikin Industries pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Star Group pays an annual dividend of $0.74 per share and has a dividend yield of 6.1%. Daikin Industries pays out 22.6% of its earnings in the form of a dividend. Star Group pays out 50.0% 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. Star Group has raised its dividend for 13 consecutive years. Star Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
40.4% of Star Group shares are held by institutional investors. 20.4% of Star Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Daikin Industries and Star Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Daikin Industries | $31.21 billion | 1.17 | $1.75 billion | $0.62 | 20.08 |
| Star Group | $1.78 billion | 0.22 | $73.50 million | $1.48 | 8.19 |
Daikin Industries has higher revenue and earnings than Star Group. Star Group is trading at a lower price-to-earnings ratio than Daikin Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Star Group beats Daikin Industries on 8 of the 15 factors compared between the two stocks.
About Daikin Industries
Daikin Industries,Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products in Japan, the Americas, China, Asia, Europe, Europe, and internationally. The company’s air-conditioning and refrigeration equipment products include room air-conditioning systems; air purifiers; heat-pump hot-water supply and room-heating systems; packaged air-conditioning systems; multiple air-conditioning systems for office buildings; air-conditioning systems for facilities and plants; heat reclaim ventilators; freezers; water chillers; turbo refrigerator equipment; air-handling units; air filters; industrial dust collectors; marine-type container refrigeration; and refrigerating and freezing showcases. The company’s chemical products comprising fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps and valves, cooling equipment and systems, inverter-controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. Daikin Industries,Ltd. was founded in 1924 and is headquartered in Osaka, Japan.
About Star Group
Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.
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