Analyzing Genus (OTCMKTS:GENSF) & Graham (NYSE:GHC)

Genus (OTCMKTS:GENSF) and Graham (NYSE:GHC) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Genus and Graham”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genus	N/A	N/A	N/A	$0.48	65.26
Graham	$5.07 billion	0.98	$292.29 million	$124.08	9.48

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

Profitability

This table compares Genus and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genus	N/A	N/A	N/A
Graham	10.69%	5.73%	3.32%

Dividends

Genus pays an annual dividend of $0.17 per share and has a dividend yield of 0.5%. Graham pays an annual dividend of $7.52 per share and has a dividend yield of 0.6%. Genus pays out 34.9% of its earnings in the form of a dividend. Graham pays out 6.1% 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. Graham has increased its dividend for 10 consecutive years. Graham is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current recommendations for Genus and Graham, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genus	0	1	1	0	2.50
Graham	0	0	1	1	3.50

Insider and Institutional Ownership

29.7% of Genus shares are owned by institutional investors. Comparatively, 93.2% of Graham shares are owned by institutional investors. 18.6% of Graham shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Graham beats Genus on 12 of the 13 factors compared between the two stocks.

About Genus

Genus plc operates as an animal genetics company in North America, Latin America, the United Kingdom, rest of Europe, the Middle East, Russia, Africa, and Asia. The company operates through three segments: Genus PIC, Genus ABS, and Genus Research and Development. It sells breeding pigs and semen to breed pigs with various characteristics for pork production under the PIC brand. The company also sells bull semen and embryos to breed calves with various characteristics for milk and beef production under the ABS, Genus, and Bovec brands. In addition, it offers technical services to farmers. The company was incorporated in 1994 and is based in Basingstoke, the United Kingdom.

About Graham

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company in the United States and internationally. It provides test preparation services and materials; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global; operations support services for online courses and programs; training and test preparation services for accounting and financial services professionals; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates colleges, business school, higher education institution, and an online learning institution. The company also owns and operates television stations, restaurants, and entertainment venues; engages in the financial training and automobile dealerships business; offers social media management tools to connect newsrooms with their users; produces Foreign Policy magazine and ForeignPolicy.com website; and publishes Slate, an online magazine, as well as French-language news magazine websites at slate.fr and slateafrique.com. In addition, it provides social media marketing solutions; home health, hospice, and palliative services; burners, igniters, dampers, and controls; screw jacks, linear actuators, and related linear motion products, and lifting systems; pressure impregnated kiln-dried lumber and plywood products; digital advertising services; power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies; dermatology and professional aesthetics, and skin care services; software and services; and operates pharmacy. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.