ASSA ABLOY AB (publ) (OTCMKTS:ASAZY) vs. Pigeon (OTCMKTS:PGENY) Critical Analysis

Pigeon (OTCMKTS:PGENY) and ASSA ABLOY AB (publ) (OTCMKTS:ASAZY) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Pigeon and ASSA ABLOY AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pigeon	8.04%	10.79%	8.49%
ASSA ABLOY AB (publ)	10.02%	15.60%	7.32%

Dividends

Pigeon pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. ASSA ABLOY AB (publ) pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. Pigeon pays out 25.0% of its earnings in the form of a dividend. ASSA ABLOY AB (publ) pays out 23.9% 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. ASSA ABLOY AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Pigeon and ASSA ABLOY AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pigeon	$688.99 million	2.12	$55.37 million	$0.12	25.50
ASSA ABLOY AB (publ)	$13.27 billion	2.52	$1.29 billion	$0.67	22.46

ASSA ABLOY AB (publ) has higher revenue and earnings than Pigeon. ASSA ABLOY AB (publ) is trading at a lower price-to-earnings ratio than Pigeon, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Pigeon has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500. Comparatively, ASSA ABLOY AB (publ) has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Pigeon and ASSA ABLOY AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pigeon	0	0	0	0	0.00
ASSA ABLOY AB (publ)	1	0	0	0	1.00

Summary

ASSA ABLOY AB (publ) beats Pigeon on 10 of the 12 factors compared between the two stocks.

About Pigeon

Pigeon Corporation, together with its subsidiaries, engages in the manufacture, sale, import, and export of baby and child-care products, maternity items, women’s care products, home healthcare products, and nursing care products in Japan and internationally. The company operates in four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. The company is involved in the provision of baby and mother care products, such as nursing bottles and nipples, toiletries, breast pads, breast pumps, nipple care products, breast milk storage bags, and breastfeeding-related products under Pigeon and Lansinoh brands. It also offers non-woven products, baby strollers, aging-prevention products, wet wipes, skincare products, cleaning and disinfecting products, and elder care products and services. In addition, the company provides child-minding and daycare services, in-home nursing care support services, outpatient care facility services, operation of in-company childcare facilities, daycare services, event childcare services, babysitter dispatch services, preschool education services, and at-home elder care services. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

About ASSA ABLOY AB (publ)

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.