Pitney Bowes (NYSE:PBI) vs. Konica Minolta (OTCMKTS:KNCAY) Head to Head Survey

Pitney Bowes (NYSE:PBI) and Konica Minolta (OTCMKTS:KNCAY) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Earnings and Valuation

This table compares Pitney Bowes and Konica Minolta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pitney Bowes	$2.03 billion	0.91	-$203.60 million	($0.91)	-11.12
Konica Minolta	$7.41 billion	0.19	-$313.39 million	($0.12)	-47.67

Pitney Bowes has higher earnings, but lower revenue than Konica Minolta. Konica Minolta is trading at a lower price-to-earnings ratio than Pitney Bowes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pitney Bowes and Konica Minolta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pitney Bowes	-7.18%	-31.61%	4.53%
Konica Minolta	-0.40%	-0.84%	-0.33%

Analyst Recommendations

This is a breakdown of recent ratings for Pitney Bowes and Konica Minolta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pitney Bowes	0	1	0	0	2.00
Konica Minolta	0	0	0	0	0.00

Insider & Institutional Ownership

67.9% of Pitney Bowes shares are owned by institutional investors. 9.0% of Pitney Bowes shares are owned by company insiders. 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

Pitney Bowes pays an annual dividend of $0.28 per share and has a dividend yield of 2.8%. Konica Minolta pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Pitney Bowes pays out -30.8% of its earnings in the form of a dividend. Konica Minolta pays out -33.3% 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. Pitney Bowes has raised its dividend for 1 consecutive years. Pitney Bowes is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Pitney Bowes has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Konica Minolta has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Summary

Pitney Bowes beats Konica Minolta on 10 of the 15 factors compared between the two stocks.

About Pitney Bowes

Pitney Bowes Inc., a shipping and mailing company, provides technology, logistics, and financial services to small and medium-sized businesses, large enterprises, retailers, and government clients in the United States and internationally. It operates through Global Ecommerce, Presort Services, and SendTech Solutions segments. The Global Ecommerce segment provides domestic parcel services, cross-border solutions, and digital delivery services. The Presort Services segment offers mail sortation services, which allow clients to qualify volumes of first-class mail, marketing mail, marketing mail flats, and bound printed matter for postal work sharing discounts. The SendTech Solutions segment provides physical and digital mailing and shipping technology solutions, and other applications for sending, tracking and receiving of letters, parcels, and flats as well as financing alternatives to finance equipment and product purchases. It markets its products, solutions, and services through direct and inside sales force, global and regional partner channels, direct mailings, and digital channels. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was incorporated in 1920 and is headquartered in Stamford, Connecticut.

About Konica Minolta

Konica Minolta, Inc. engages in digital workplace, professional print, healthcare, and industrial businesses in Japan, China, other Asian countries, the United States, Europe, and internationally. It develops, manufactures, and sells multi-functional peripherals, digital printing systems, and related consumables, as well as offers IT and printing solutions and services. The company also provides diagnostic imaging systems, such as digital X-ray diagnostic imaging, diagnostic ultrasound systems, and other systems; digitalization, networking, solutions, and services in the medical field; genetic testing and drug discovery support services; and primary care services. In addition, it offers measuring instruments; functional film displays; organic light emitting diode lighting products; industrial inkjet printheads; lenses for industrial and professional use; and imaging IoT and visual solutions. The company was founded in 1873 and is headquartered in Tokyo, Japan.