Critical Analysis: Tokuyama (OTCMKTS:TKYMY) vs. Constellation Software (OTCMKTS:CNSWF)

Constellation Software (OTCMKTS:CNSWF) and Tokuyama (OTCMKTS:TKYMY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Volatility & Risk

Constellation Software has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Tokuyama has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Constellation Software and Tokuyama’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Software	6.47%	78.00%	16.62%
Tokuyama	6.08%	7.20%	3.98%

Dividends

Constellation Software pays an annual dividend of $4.00 per share and has a dividend yield of 0.1%. Tokuyama pays an annual dividend of $0.19 per share and has a dividend yield of 1.9%. Constellation Software pays out 16.1% of its earnings in the form of a dividend. Tokuyama pays out 19.8% 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.

Valuation & Earnings

This table compares Constellation Software and Tokuyama”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Software	$8.41 billion	8.10	$565.00 million	$24.83	129.48
Tokuyama	$2.37 billion	N/A	$122.48 million	$0.96	10.48

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Constellation Software and Tokuyama, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Software	0	0	0	0	N/A
Tokuyama	0	0	0	0	N/A

Summary

Constellation Software beats Tokuyama on 9 of the 10 factors compared between the two stocks.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.