SMC (OTCMKTS:SMCAY – Get Free Report) and Brother Industries (OTCMKTS:BRTHY – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.
Earnings and Valuation
This table compares SMC and Brother Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SMC | $5.60 billion | 4.96 | $1.11 billion | $0.88 | 24.72 |
| Brother Industries | $5.94 billion | 0.98 | $449.23 million | $2.88 | 15.80 |
Profitability
This table compares SMC and Brother Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SMC | 19.84% | 8.25% | 7.46% |
| Brother Industries | 6.19% | 7.84% | 5.88% |
Volatility and Risk
SMC has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.
Insider & Institutional Ownership
1.0% of SMC shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Dividends
SMC pays an annual dividend of $0.19 per share and has a dividend yield of 0.9%. Brother Industries pays an annual dividend of $0.88 per share and has a dividend yield of 1.9%. SMC pays out 21.6% of its earnings in the form of a dividend. Brother Industries pays out 30.6% 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.
Analyst Ratings
This is a breakdown of current ratings for SMC and Brother Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SMC | 0 | 1 | 0 | 1 | 3.00 |
| Brother Industries | 0 | 1 | 0 | 0 | 2.00 |
Summary
SMC beats Brother Industries on 11 of the 14 factors compared between the two stocks.
About SMC
SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers air management system, directional control valves, air cylinders, rotatory actuators/air grippers, electric actuators/cylinders, fitting and tubing, and modular F.R.L./pressure control equipment, as well as vacuum, air preparation, and lubrication equipment. It also provides flow control equipment, speed controllers, silencers/exhaust/blow guns/pressure gauges, switches/sensors/controllers, static neutralization equipment, and industrial device communication equipment/wireless system. In addition, the company offers process valves, chemical liquid valves/fittings and needle valves/tubing, process pumps, temperature control equipment, and process gas equipment, as well as high vacuum equipment, industrial filters/sintered metal elements, and pneumatic instrumentation and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.
About Brother Industries
Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.
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