Financial Review: Haier Electronics Group (OTCMKTS:HRELY) versus Debenhams (OTCMKTS:DBHSY)

Volatility and Risk

Debenhams has a beta of -0.62, suggesting that its stock price is 162% less volatile than the S&P 500. Comparatively, Haier Electronics Group has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Debenhams and Haier Electronics Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Debenhams	N/A	N/A	N/A
Haier Electronics Group	N/A	N/A	N/A

Dividends

Debenhams pays an annual dividend of $0.02 per share and has a dividend yield of 200.0%. Haier Electronics Group pays an annual dividend of $0.58 per share and has a dividend yield of 1.3%. Debenhams pays out -1.0% of its earnings in the form of a dividend. Haier Electronics Group pays out 27.5% 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. Debenhams is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Debenhams and Haier Electronics Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Debenhams	$3.07 billion	0.00	-$621.24 million	($2.02)	0.00
Haier Electronics Group	$10.98 billion	1.15	$1.06 billion	$2.11	21.27

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

Summary

Haier Electronics Group beats Debenhams on 6 of the 8 factors compared between the two stocks.

About Debenhams

Debenhams plc, through its subsidiaries, operates and franchises a range of department stores in the United Kingdom, the Republic of Ireland, Denmark, and internationally. It provides women's wear, men's wear, kids wear, and lingerie, as well as beauty, home, furniture, gift and toy, electrical, Christmas, and others products. The company's brands primarily include The Collection, Mantaray, Maine New England, and Red Herring. It is also involved in online retailing business; and the operation of in-store cafes and restaurants. The company owns and operates 240 department stores in approximately 90 countries. Debenhams plc was founded in 1778 and is headquartered in London, the United Kingdom.

About Haier Electronics Group

As of December 21, 2020, operates as a subsidiary of Haier Smart Home Co., Ltd.