Financial Survey: Obayashi (OTCMKTS:OBYCF) vs. Frontdoor (NASDAQ:FTDR)

Frontdoor (NASDAQ:FTDR) and Obayashi (OTCMKTS:OBYCF) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Risk and Volatility

Frontdoor has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Obayashi has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Earnings & Valuation

This table compares Frontdoor and Obayashi”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$1.84 billion	2.20	$235.00 million	$3.51	16.04
Obayashi	$17.21 billion	1.11	$976.81 million	$1.72	15.70

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

Analyst Ratings

This is a summary of current ratings and price targets for Frontdoor and Obayashi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	1	3	2	0	2.17
Obayashi	0	0	0	0	0.00

Frontdoor presently has a consensus target price of $59.75, indicating a potential upside of 6.13%. Given Frontdoor’s stronger consensus rating and higher probable upside, analysts clearly believe Frontdoor is more favorable than Obayashi.

Profitability

This table compares Frontdoor and Obayashi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	12.87%	122.74%	14.33%
Obayashi	7.06%	9.60%	3.90%

Summary

Frontdoor beats Obayashi on 10 of the 12 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, river works, urban civil engineering structures, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in urban areas, as well as property management activities; solar, biomass, geothermal, and wind power generation business; and PPP and agriculture business. In addition, the company provides non-life insurance agency business. Further, it engages in the provision of urban redevelopment, contracted operations, and facility management services, as well as M&E design and construction activities. The company was founded in 1892 and is headquartered in Tokyo, Japan.