Critical Comparison: Jerash Holdings (US) (NASDAQ:JRSH) and Teijin (OTCMKTS:TINLY)

Jerash Holdings (US) (NASDAQ:JRSH) and Teijin (OTCMKTS:TINLY) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

3.4% of Jerash Holdings (US) shares are owned by institutional investors. 42.7% of Jerash Holdings (US) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Jerash Holdings (US) and Teijin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerash Holdings (US)	$145.81 million	0.27	-$850,000.00	$0.06	51.33
Teijin	$6.60 billion	0.26	$187.09 million	($1.77)	-4.95

Teijin has higher revenue and earnings than Jerash Holdings (US). Teijin is trading at a lower price-to-earnings ratio than Jerash Holdings (US), indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Jerash Holdings (US) and Teijin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerash Holdings (US)	0	1	1	0	2.50
Teijin	0	0	0	0	0.00

Jerash Holdings (US) currently has a consensus price target of $4.00, indicating a potential upside of 29.87%. Given Jerash Holdings (US)’s stronger consensus rating and higher probable upside, equities analysts clearly believe Jerash Holdings (US) is more favorable than Teijin.

Volatility & Risk

Jerash Holdings (US) has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Teijin has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500.

Profitability

This table compares Jerash Holdings (US) and Teijin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerash Holdings (US)	0.45%	1.03%	0.79%
Teijin	N/A	N/A	N/A

Dividends

Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 6.5%. Teijin pays an annual dividend of $0.19 per share and has a dividend yield of 2.2%. Jerash Holdings (US) pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teijin pays out -10.7% of its earnings in the form of a dividend.

Summary

Jerash Holdings (US) beats Teijin on 13 of the 16 factors compared between the two stocks.

About Jerash Holdings (US)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

About Teijin

Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.