Otsuka (OTCMKTS:OTSKY) and Orion Oyj (OTCMKTS:ORINF) Financial Analysis

Otsuka (OTCMKTS:OTSKY) and Orion Oyj (OTCMKTS:ORINF) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Dividends

Otsuka pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Orion Oyj pays an annual dividend of $1.25 per share and has a dividend yield of 1.5%. Otsuka pays out 11.3% of its earnings in the form of a dividend. Orion Oyj pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

18.8% of Orion Oyj shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Otsuka and Orion Oyj, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otsuka	1	2	1	0	2.00
Orion Oyj	0	0	0	0	0.00

Valuation and Earnings

This table compares Otsuka and Orion Oyj”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otsuka	$16.51 billion	2.20	$2.43 billion	$2.30	14.73
Orion Oyj	N/A	N/A	N/A	$1.61	51.50

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

Profitability

This table compares Otsuka and Orion Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otsuka	14.76%	12.52%	9.21%
Orion Oyj	N/A	N/A	N/A

Summary

Otsuka beats Orion Oyj on 8 of the 11 factors compared between the two stocks.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.

About Orion Oyj

Orion Oyj develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients (APIs) in Finland, Scandinavia, rest of Europe, North America, and internationally. The company provides prescription drugs and self-care products, which includes Nubeqa for the treatment of prostate cancer; Precedex, Dexdor, and Precedex for human use; Burana for inflammatory pain; Divina series for menopausal symptoms; Trexan for rheumatoid arthritis and cancer; Stalevo, Entacapone, and Comtess/Comtan for Parkinson’s disease; Biosimilars for rheumatoid arthritis and inflammatory bowel diseases; and Simdax for acute decompensated heart failure, as well as Fareston for breast cancer. It also offers Salmeterol/fluticasone Easyhaler, Budesonide/formoterol Easyhaler, Formoterol Easyhaler, Budesonide Easyhaler, Beclomet Easyhaler, and Buventol Easyhaler drugs for the treatment of asthma and chronic obstructive pulmonary disease. In addition, the company provides veterinary drugs comprising Bonqat, Clevor, Domosedan, Domitor, Antisedan, Dexdomitor, Domosedan Gel, Sileo, and Tessie; APIs for generic compounds and proprietary products, as well as contract manufacturing services; and markets and sells veterinary drugs manufactured by other international companies. Further, the company has partnership with Propeller Health to connect the Easyhaler(R) product portfolio; and a research collaboration and license agreement with Amneal Pharmaceuticals, Inc. to commercialize Amneal’s generic products. Orion Oyj was founded in 1917 and is headquartered in Espoo, Finland.