Analyzing CTT Correios de Portugal (OTCMKTS:CTTPY) & Orix Corp Ads (NYSE:IX)

CTT Correios de Portugal (OTCMKTS:CTTPY) and Orix Corp Ads (NYSE:IX) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for CTT Correios de Portugal and Orix Corp Ads, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTT Correios de Portugal	0	0	0	0	0.00
Orix Corp Ads	0	0	1	0	3.00

Volatility and Risk

CTT Correios de Portugal has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500. Comparatively, Orix Corp Ads has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares CTT Correios de Portugal and Orix Corp Ads”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTT Correios de Portugal	$1.20 billion	0.91	$49.28 million	$0.82	19.80
Orix Corp Ads	$18.88 billion	1.77	$2.32 billion	$2.61	11.24

Orix Corp Ads has higher revenue and earnings than CTT Correios de Portugal. Orix Corp Ads is trading at a lower price-to-earnings ratio than CTT Correios de Portugal, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CTT Correios de Portugal and Orix Corp Ads’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTT Correios de Portugal	4.13%	16.54%	0.88%
Orix Corp Ads	14.53%	10.30%	2.57%

Dividends

CTT Correios de Portugal pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. Orix Corp Ads pays an annual dividend of $0.91 per share and has a dividend yield of 3.1%. CTT Correios de Portugal pays out 22.0% of its earnings in the form of a dividend. Orix Corp Ads pays out 34.9% 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.

Insider & Institutional Ownership

1.7% of Orix Corp Ads shares are owned by institutional investors. 0.1% of Orix Corp Ads shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Orix Corp Ads beats CTT Correios de Portugal on 12 of the 15 factors compared between the two stocks.

About CTT Correios de Portugal

CTT – Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. It operates through Mail, Express & Parcels, Financial Services & Retail, and Bank segments. The company offers courier and urgent mail transport services; postal financial services; and banking services. It also engages in the business of payments related to collection of invoices and fines. In addition, the company enables the payment of various services and utilities through a network of approximately 5,000 agents covering business outlets as stationery stores, tobacco shops, kiosks, and supermarkets. It operates a retail network of 566 post offices; 1,808 postal agencies; 223 postal delivery offices; 4,576 postal delivery routes; and a fleet of 3,925 vehicles. The company was formerly known as Correio Publico. CTT – Correios De Portugal, S.A. was founded in 1520 and is headquartered in Lisbon, Portugal.

About Orix Corp Ads

ORIX Corporation provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East. The company's Corporate Financial Services and Maintenance Leasing segment is involved in the finance and fee; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment businesses; and provision of life insurance and environment and energy-related products and services. Its Real Estate segment develops, rents, and manages real estate properties; operates facilities; real estate asset management; manages residential condominiums and office building; and provides construction contracting, real estate brokerage, and real estate investment advisory services, as well as operates hotels and Japanese inns. The company's PE Investment and Concession segment engages in the private equity (PE) investment and concession businesses. Its Environment and Energy segment provides renewable energy; ESCO; retails electric power; sells solar panels and battery electricity storage systems; and recycling and waste management services, as well as generates solar power. The company's Insurance segment sells life insurance products through agents, banks, and other financial institutions, as well as face-to-face and online. Its Banking and Credit segment provides banking and consumer finance services. The company's Aircraft and Ships segment engages in the aircraft leasing and management, and ship-related finance and investment businesses. Its ORIX USA segment offers finance, investment, and asset management services. The company's ORIX Europe segment provides equity and fixed income asset management services. Its Asia and Australia segment offers finance and investment businesses. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.