Financial Contrast: Monex Group (OTCMKTS:MNXBF) and Computershare (OTCMKTS:CMSQF)

Monex Group (OTCMKTS:MNXBF) and Computershare (OTCMKTS:CMSQF) are both financial services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares Monex Group and Computershare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monex Group	N/A	N/A	N/A	$11.59	0.43
Computershare	N/A	N/A	N/A	$0.48	52.17

Monex Group is trading at a lower price-to-earnings ratio than Computershare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Monex Group and Computershare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monex Group	N/A	N/A	N/A
Computershare	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Monex Group and Computershare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monex Group	0	0	0	0	0.00
Computershare	0	0	2	0	3.00

Computershare has a consensus price target of $39.50, suggesting a potential upside of 58.51%. Given Computershare’s stronger consensus rating and higher possible upside, analysts clearly believe Computershare is more favorable than Monex Group.

Insider & Institutional Ownership

9.7% of Monex Group shares are held by institutional investors. Comparatively, 21.9% of Computershare shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Monex Group pays an annual dividend of $6.53 per share and has a dividend yield of 130.7%. Computershare pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Monex Group pays out 56.4% of its earnings in the form of a dividend. Computershare pays out 58.6% 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. Monex Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Computershare beats Monex Group on 5 of the 8 factors compared between the two stocks.

About Monex Group

Monex Group, Inc., an online financial institution, provides retail online brokerage services in Japan, the United States, China, and Australia. It offers international forex, asset management, investor education, M&A advisory, and cryptocurrency exchange services; investment and trading, and investment education services; asset building and management services; custodial trust service; private banking services for high net worth clients; investment advisory services; management and utilization services for genomic, medical, and healthcare data; and education and childcare services. In addition, it involved in development and operation of marketing SaaS ChatBook'; research and design, study, development, and consultation on cryptocurrency; and development of trading technology. The company was formerly known as Monex Beans Holdings, Inc. and changed its name to Monex Group, Inc. in July 2008. Monex Group, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.

About Computershare

Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services. The company offers issuer services that include register maintenance, corporate actions, stakeholder relationship management, corporate governance, and related services; mortgage services and property rental, including tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. It also provides business services, including the provision of bankruptcy, class action, and corporate trust administration services; communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery; and technology services, such as software solutions in share registry and financial services, as well as agency services in connection with the administration of debt securities. It operates in Australia, New Zealand, Asia, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States. The company was incorporated in 1978 and is based in Abbotsford, Australia.