Japan Tobacco (OTCMKTS:JAPAY) & AO World (OTCMKTS:AOWDF) Financial Review

AO World (OTCMKTS:AOWDF) and Japan Tobacco (OTCMKTS:JAPAY) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Valuation & Earnings

This table compares AO World and Japan Tobacco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AO World	$2.13 billion	0.44	-$41.52 million	N/A	N/A
Japan Tobacco	$20.83 billion	2.66	$3.06 billion	$0.87	17.97

Japan Tobacco has higher revenue and earnings than AO World.

Volatility and Risk

AO World has a beta of -0.17, suggesting that its stock price is 117% less volatile than the S&P 500. Comparatively, Japan Tobacco has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for AO World and Japan Tobacco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AO World	0	0	0	0	0.00
Japan Tobacco	0	0	0	1	4.00

Profitability

This table compares AO World and Japan Tobacco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AO World	N/A	N/A	N/A
Japan Tobacco	14.74%	11.11%	6.35%

Summary

Japan Tobacco beats AO World on 9 of the 9 factors compared between the two stocks.

About AO World

AO World plc, together with its subsidiaries, engages in the online retailing of domestic appliances the United Kingdom and Germany. It retails fridge freezers, cookers and washing machines, and audiovisual equipment, as well as computing, mobile, gaming, and smart home technology products. The company also provides logistics and transport services. In addition, it engages in the investment activities; and waste electrical and electronic equipment (WEEE) recycling activities. The company sells its products through its websites, marketplaces, and third-party websites. AO World plc was founded in 2000 and is headquartered in Bolton, the United Kingdom.

About Japan Tobacco

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.